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V1797-17 10 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Training courses exempt from VAT if subjects are part of curricula and are not recreational

A partnership has enquired whether its training courses and the services provided by its subcontracted teachers are exempt from VAT. The DGT has ruled that the exemption depends on the subjects being included in educational system curricula and on meeting specific subjective and objective requirements.

The question raised

Value Added Tax treatment of the courses provided, as well as the taxation of the subcontracted teacher.

The DGT's ruling

The exemption for professional training and retraining requires that the activity be carried out by authorized entities and that the subjects be included in the curricula of the educational system, according to the Ministry of Education. Furthermore, the activity must not be of a merely recreational nature. Private tutoring services may be exempt if they are provided by natural persons, the subjects are included in curricula, and their professional activity falls under heading 826 of the IAE.

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