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V2805-17 30 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Distinction between teaching services and electronic services in online training based on human intervention

A training company seeks guidance on the taxation of its in-person and online courses, book deliveries, and remuneration to partners. The DGT clarifies the distinction between teaching services and electronic services, as well as the applicable rules regarding location and exemptions.

The question raised

Taxation under Value Added Tax regarding the described activity. Place of supply of the services rendered. When services are considered electronic services and when they are considered teaching services.

The DGT's ruling

Online services are electronic services if they consist of the supply of automated content with incidental human intervention. They are teaching services if the teacher uses the internet as a means of communication to deliver the content. Teaching services may be exempt if they meet subjective and objective educational requirements, whereas electronic services are taxed at the general rate of 21%.

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