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V1593-18 8 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Coaching training only exempt from VAT if subjects are in official curricula and other requirements are met

A professional inquired whether their coaching and corporate training classes could be exempt from VAT. The DGT ruled that for the exemption to apply, the subjects must be included in the educational system's curricula, and it is not necessary to register under the business activities tariff.

The question raised

Whether the described activity may qualify for the exemption set forth in Article 20.one 10º of the Value Added Tax Law.

The DGT's ruling

The exemption for individual classes requires that they be provided by natural persons and that the subjects be included in the curricula of any level or grade of the educational system. Furthermore, they must not require registration in business activity tariffs, which is satisfied if the activity is included in Section Two (Professional Activities) of the Tax on Economic Activities. If these requirements are not met, the training shall be taxed at the general rate of 21 percent.

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