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V2681-20 2 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio prestado por vía electrónica

Online training courses may be VAT exempt if not classified as electronically supplied services

A fitness training company has enquired whether its in-person and online courses are exempt from VAT. The DGT clarifies that if online courses are automated services supplied electronically, they are subject to the 21% rate. However, if there is teacher-student interaction, they may be exempt provided they meet the requirements of being an authorised entity and having a formal curriculum.

The question raised

Exemption of the training services provided by the applicant and, if not, the applicable tax rate in Value Added Tax.

The DGT's ruling

Online training services are services provided by electronic means (not exempt and at 21%) if they consist of the supply of recorded or automated content where human intervention is ancillary. They are exempt educational services if they are provided through remote communication between teacher and student, provided that the entity is authorized and the subjects form part of an official curriculum without a merely recreational character.

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