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V2666-14 8 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Training services for job placement may be exempt or taxed at 10% or 21% depending on the entity and the nature of the programme

A query was raised regarding VAT taxation on training and professional retraining courses for adults at risk of social exclusion. The DGT indicates that these may be exempt if provided by a social entity, or taxed at 10% if they constitute social assistance services provided by non-exempt entities.

The question raised

Taxation of said training services in Value Added Tax.

The DGT's ruling

Training is exempt if provided by a public or private law entity authorized and the subjects are part of an educational system curriculum without being recreational. If the entity is of a social nature according to article 20.three, the services are exempt. If it is not exempt, but the activity falls under social assistance, the 10% rate applies. In any other case, the general rate of 21% applies.

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