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V2948-17 15 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Coaching services for individuals subject to 21% VAT if the provider is resident in Spain

A company has requested clarification regarding the VAT treatment of coaching services and online courses for various types of clients. The DGT clarifies that whether a service is classified as an electronic service or an educational service depends on the level of human intervention, which in turn determines the applicable location rules and exemptions.

The question raised

Taxation under Value Added Tax regarding the aforementioned services.

The DGT's ruling

Coaching services provided to individuals (non-entrepreneurs) are taxed at 21% if the provider is based in Spain, as they are not included in the list of services with special localization rules. If the courses are services provided by electronic means (automated and with minimal human intervention), they are localized according to the recipient's domicile. Teaching services are only exempt if they are provided by authorized entities and cover subjects within official curricula.

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