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V2637-14 7 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Nursery services may be VAT exempt, but uniform sales and play centres are subject to standard rate

A commercial entity has requested a ruling on the VAT treatment of its nursery, catering, transport, play centre, and uniform sales services. The DGT has determined that the VAT exemption for nursery services depends on the nature of the entity and the activity, whereas play centre services and the sale of uniforms are subject to VAT.

The question raised

Taxation of services provided under Value Added Tax.

The DGT's ruling

Childcare services are exempt if provided by public law entities or authorized private entities, with the exemption extending to ancillary services such as dining and transport. If the entity is a commercial entity or a natural person without a nursery license, the rate is 10%. Playgroup services with animation activities are taxed at 21% as mixed services, whereas the supply of food in the bar is taxed at 10%. The sale of school uniforms is subject to 21% and constitutes a differentiated sector from education.

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