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V2976-16 27 June 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Training courses are VAT exempt only if included in a curriculum and are not recreational

A company providing sales techniques and leadership training courses has enquired whether its services are exempt from VAT. The DGT has ruled that exemption depends on the training being part of an educational curriculum and not being merely recreational in nature.

The question raised

Taxation in Value Added Tax and, where applicable, exemption therefrom.

The DGT's ruling

The exemption under Article 20.One.9º of Law 37/1992 requires compliance with two requirements: a subjective one, that the activity be carried out by entities of public or private law that are authorized (understanding authorized to mean those whose main activity is teaching included in a recognized curriculum), and an objective one, that the teaching transmits knowledge and competencies through an organizational framework without having a merely recreational character. If the training is not included in a curriculum of the educational system, it shall be taxed at the general rate of 21%.

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