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V2008-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Environmental awareness and education services may be VAT exempt or subject to the reduced rate of 10%

A cooperative has requested clarification on whether its environmental awareness and education activities are exempt from VAT. The DGT has ruled that these do not qualify as exempt teaching; however, they may be exempt if the cooperative is a social entity or, alternatively, subject to the reduced VAT rate.

The question raised

Taxation under Value Added Tax.

The DGT's ruling

Awareness activities and interpretive routes do not constitute exempt teaching as they do not involve the transmission of knowledge and skills within a teaching organizational framework. If the cooperative is a social entity pursuant to Article 20.Three of the Law, the services shall be exempt. If it does not hold said status, the services are subject to the reduced rate of 10%.

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