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V2692-23 3 October 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · lugar de realización

Educational and electronic services provided in the Canary Islands to recipients in the Canary Islands are not subject to VAT

A Canary Islands company has requested clarification regarding the place of supply for its vocational training services, which are provided in person, online, and to public entities. The DGT has ruled that, as both the provider and the recipients are located in the Canary Islands, VAT does not apply according to the rules of location.

The question raised

The place of performance, for the purposes of Value Added Tax, of the aforementioned operations carried out by the consultant.

The DGT's ruling

The consultant holds the status of an entrepreneur and their services are subject to VAT if performed within the territory to which the tax applies. For educational services provided to entrepreneurs, the general rule of Article 69 applies. For services provided by electronic means or educational services materially provided to non-entrepreneurs, the special rules of Article 70 apply. If both the provider and the recipients are located in the Canary Islands, the operations shall not be subject to VAT due to the applicable rules of location.

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