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V1510-17 13 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Recorded or automated online courses subject to 21% VAT as they do not qualify for educational service exemptions

A company inquired whether its online training courses for school reinforcement are exempt from VAT. The DGT ruled that if the courses are services provided electronically (automated), they do not benefit from the exemption; exemption only applies if the teaching is delivered by instructors via remote connection.

The question raised

Whether the provision of said services is exempt from Tax.

The DGT's ruling

The exemption for educational services requires that the activity consists of the transmission of knowledge between teacher and student within an organizational framework, without a recreational character. If the service is provided electronically (supply of content, recorded courses, or access to platforms where human intervention is ancillary), no exemption applies and it is taxed at 21%. Teaching provided by teachers via the internet is only considered an exempt educational service when the electronic network is the medium of communication between both parties.

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