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V1490-22 22 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Occupational health and safety courses are VAT exempt if included in study curricula

A cable television company providing occupational health and safety training has enquired whether this activity is VAT exempt and how deductions should be applied. The DGT has ruled that the courses are exempt provided the subjects are part of official study curricula, and that the company must apply separate deduction regimes for each sector of activity.

The question raised

Whether the aforementioned training services are exempt from Value Added Tax, whether said activity is ancillary to the main activity of management and commercialization of cable television services and, finally, the deduction regime applicable for Value Added Tax purposes.

The DGT's ruling

Training services are exempt from VAT if they meet a subjective requirement (authorized entities) and an objective requirement (subjects included in the curricula of the educational system). Since occupational risk prevention courses are included in said curricula, they are exempt. When performing activities in differentiated sectors, the company must apply the deduction regime separately for the teaching activity (exempt) and the television activity (taxable and not exempt).

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