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V2894-23 30 October 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption for training services depends on whether provided as a professional or through an entity

A teaching professional has enquired whether their public speaking and training courses are exempt from VAT. The DGT indicates that exemption will depend on whether they act as an individual professional or as an authorised business entity, and whether the subjects are included in official curricula.

The question raised

Whether the activities carried out are exempt from Value Added Tax, and whether they would also be exempt if provided by a commercial entity.

The DGT's ruling

If the activity is carried out by a professional on a self-employed basis, the exemption under art. 20.one.10º requires that the classes pertain to subjects within official curricula and that it is not necessary to register in the business activity tariff. If carried out through a business organization (academy), the exemption under art. 20.one.9º requires that the entity be authorized for teaching and that the activity consists of the transmission of knowledge within an organizational framework, rather than being merely recreational.

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