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V1646-24 5 July 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención de la enseñanza

Language courses may be VAT exempt if requirements are met, but academy-provided accommodation is subject to travel agency tax regime

A language academy has requested a ruling on the taxation of courses that include Spanish lessons and accommodation in private houses. The DGT has determined that teaching may be exempt subject to certain requirements, but the accommodation service provided in its own name must be taxed under the special regime for travel agencies.

The question raised

Taxation regime under Value Added Tax.

The DGT's ruling

Language teaching is exempt if the subjects are included in the curricula of the Spanish educational system and are taught by authorized entities. Accommodation and catering services provided in one's own name by the academy, using third-party resources, are taxed under the special regime for travel agencies at the general rate of 21%. Property owners who rent to the academy carry out a business activity; therefore, their accommodation services with complementary services are taxed at the reduced rate of 10%.

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