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V2921-19 23 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Vocational training is VAT exempt only if included in curricula and not for recreational purposes

A consulting company plans to provide IT courses by subcontracting training centres and invoicing in its own name. The DGT rules that VAT exemption depends on the activity being included in educational system curricula and not being recreational.

The question raised

Exemption from Value Added Tax for the teaching activity subject to consultation.

The DGT's ruling

The VAT exemption for vocational training requires compliance with a subjective requirement (being an authorized or recognized entity) and an objective requirement (the non-recreational transmission of knowledge). Courses shall be exempt if they are included in a curriculum within the educational system according to the Ministry of Education, Culture and Sport. If these requirements are not met, the training shall be taxed at the general rate of 21%.

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