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V1529-17 15 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Training may be VAT exempt if subjects are included in official curricula

A taxpayer queried the VAT treatment of workshops for writing, music, and other subjects. The DGT ruled that exemption depends on whether the subjects are part of the formal educational system's curricula and that the activity must not be merely recreational.

The question raised

Taxation under Value Added Tax regarding the consulted activities. Consideration of educational center.

The DGT's ruling

For teaching to be exempt under Article 20.One.9, it must be provided by authorized entities and the subjects must be included in the curricula of the educational system, without a merely recreational character. If the teaching is provided by natural persons as professionals, the exemption under Article 20.One.10 applies if the subjects are in the curricula and the activity is professional according to the IAE. In the event that these requirements are not met, the training shall be taxed at the general rate of 21%.

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