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V2150-17 21 August 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption for vocational training may apply even if it is not the business's main activity

A query was raised regarding whether vocational training courses are exempt from VAT when a company carries out other primary activities. The DGT ruled that the exemption applies if the teaching activity is included within the curricula of the Spanish education system.

The question raised

Taxation of training courses when it is not the main activity of the taxpayer.

The DGT's ruling

To apply the exemption, the activity must meet a subjective requirement (being a public or private law entity that is authorized) and an objective requirement (being the teaching of subjects included in curricula). If the entrepreneur carries out activities other than teaching, the exemption applies to the teaching activity provided that it is objectively a teaching service included in said curricula. It is not relevant whether teaching is not the main activity or if other activities have greater importance.

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