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V2967-14 3 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Mathematics and English teaching services are VAT exempt when provided as an educational centre

An entity providing mathematics and English courses for children has enquired whether its services are exempt from VAT. The DGT has ruled that the exemption applies if the activity is carried out as an authorised educational centre and consists of the transmission of knowledge without a recreational character.

The question raised

Taxation under Value Added Tax on the training services described.

The DGT's ruling

The exemption under Article 20.One.9º of Law 37/1992 requires a subjective requirement, namely that the activity be carried out by public law entities or authorized private entities, and an objective requirement, namely that the teaching transmits knowledge and skills without being merely recreational. An educational center is considered to be an economic unit with the material and human resources to provide teaching services on a continuous basis. If the service consists solely of the secondment of teaching staff and not of an educational service, it shall be subject to the general rate of 21%.

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