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V2629-20 12 August 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Online training may be VAT exempt if classified as an educational service rather than an electronically supplied service

A company sought clarification on whether its home automation training software could qualify for VAT exemption. The DGT explains that exemption depends on whether the service constitutes teaching provided by an instructor via the internet or an automated service (supplied electronically), the latter of which is not exempt.

The question raised

Whether the activity subject to consultation may qualify for the exemption provided for in Article 20.one.9º of the Value Added Tax Law.

The DGT's ruling

Automated distance learning services, such as the downloading of recorded courses or access to content on platforms, are services provided by electronic means and are taxed at 21%. Conversely, it is an educational service when teaching is provided by a teacher via an electronic network acting as a means of communication. For the latter to be exempt, it must be provided by authorized entities and the subjects must be included in the curricula of the educational system.

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