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V2682-20 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 or subject to 21% depending on their level of automation

A training company has enquired whether its in-person and online courses are exempt from VAT. The DGT clarifies that exemption depends on whether the service is classified as educational or as an electronically supplied service, and whether it meets the requirements regarding authorised entities and curricula.

The question raised

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

The DGT's ruling

Online teaching services are educational services (exempt) if the communication between teacher and student is the primary element. If the service is automated, such as content downloading or access to platforms without essential human intervention, it is considered a service provided by electronic means and is taxed at 21%. For the exemption, the entity must be authorized and the subjects must be part of an official curriculum without a recreational character.

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