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V1721-20 1 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption for vocational training requires inclusion in an official curriculum

An entity providing natural therapy courses has enquired whether its services are exempt from VAT. The DGT has ruled that to apply the teaching exemption, the activity must be carried out by an authorised entity and the subject matter must be included in an official curriculum.

The question raised

Application of the exemption relating to teaching contained in Article 20.One.9º of the Value Added Tax Law.

The DGT's ruling

The exemption under Article 20.One.9º of the VAT Law requires compliance with two requirements. The subjective requirement necessitates that the activity be carried out by entities under public law or authorized private entities, the latter being understood as centers whose activities consist primarily of teaching included in a recognized curriculum. The objective requirement necessitates that the teaching involves the transmission of knowledge and skills within an organizational framework, provided that it is not merely recreational and the subject matter is included in some curriculum of the educational system.

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