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V1280-20 6 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · actividad empresarial

One-off and isolated teaching services without intent of continuity are not subject to VAT

A university professor inquired whether a one-off collaborative task with an office within their own university is subject to VAT. The DGT ruled that it is not subject to VAT if it is an isolated operation without intent of continuity, but it will be subject to VAT if carried out with the intent to intervene in the market as a professional activity.

The question raised

Liability of the aforementioned operation for Value Added Tax.

The DGT's ruling

Liability for VAT depends on whether the activity is carried out independently or under a regime of employment dependency. If the service is occasional, isolated, and without an intention of continuity, performed outside the scope of a professional activity, it is not subject to the tax. Conversely, if there is an intention to intervene in the production of goods or services, the operation shall be subject to VAT.

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