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V1998-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención educativa

Master's degree teaching is VAT exempt if subjects are included in official curricula

An entity inquired whether the teaching activities of a Master's in Government, Leadership and Public Management were exempt from VAT. The DGT ruled that the exemption applies if the subjects taught are part of the official curricula within the educational system.

The question raised

Application of the educational exemption contained in Article 20.One.9º of the Value Added Tax Law to the teaching activity carried out by the applicant.

The DGT's ruling

The exemption for teaching requires a subjective requirement, that the activity be carried out by public law entities or authorized private entities, and an objective requirement, that the activity consists of the transmission of knowledge and skills without a recreational character. For the exemption to be applicable, the subjects must be included in the curricula of the levels or grades of the educational system. In this specific case, as the master's subjects are included in said curricula, the activity is exempt.

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