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V2838-18 26 October 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Childhood education services may be VAT exempt if subjects are included in the curriculum

A non-profit association has requested a ruling regarding the VAT liability of childhood education fees and the services provided by its teacher. The DGT indicates that education is exempt provided the subjects are part of the official curriculum, and further analyses whether the teacher should be taxed for independent services or if the relationship is one of employment.

The question raised

Liability for Value Added Tax on the monthly fees charged for the provision of childhood education services, as well as on the monthly remuneration paid by the association to the teacher.

The DGT's ruling

Childhood education is exempt from VAT if the subjects taught are included in any curriculum of the educational system. Regarding the teacher, if her relationship with the association is an employment relationship, her services are not subject to the tax; if she acts as an independent professional, they will be subject to it. In the event that she is an independent professional, the exemption for private lessons could apply if the subjects are in the curricula and she is not required to register in the business activity tariff.

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