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V2004-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Dance teaching may be VAT exempt if authorised entity and educational requirements are met

A professional providing dance and ballet classes has enquired whether their services are exempt from VAT. The DGT indicates that exemption depends on the activity being carried out by an authorised entity and that the teaching must not be merely recreational in nature.

The question raised

Whether the services provided are exempt from Value Added Tax.

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 (whose primary purpose is the teaching of a recognized curriculum), and an objective requirement, that the activity consists of the transmission of knowledge and skills within an organizational framework, provided that it is not merely recreational. The exemption does not apply to subjects not included in the curricula of the educational system.

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