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V1867-20 9 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio prestado por vía electrónica

Online teaching services may be VAT exempt if there is direct human intervention

A company has requested clarification on whether its English learning platform is VAT exempt or subject to the standard rate. The DGT ruled that it depends on whether the service constitutes teaching provided by a teacher via an electronic network or an automated service provided by electronic means.

The question raised

Exemption of the described services under Value Added Tax and, if not applicable, the applicable tax rate.

The DGT's ruling

Educational services provided by teachers via the internet through remote communication may be exempt if they meet the requirements of an authorized entity and curriculum subject matter. If the service is automated (supply of content, recorded courses, or access to platforms without essential human intervention), it is considered a service provided by electronic means and is taxed at 21%. Digital teaching material shall be ancillary and exempt only if it forms part of a single provision of exempt educational services.

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