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V3029-20 8 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

School tutoring may be VAT exempt if subjects are part of the official curriculum

A civil society firm has requested clarification on the taxation of childcare services and school tutoring. The DGT has ruled that tutoring classes are exempt from VAT provided the subjects belong to the formal education system, whereas childcare is subject to the reduced rate unless provided by a social welfare entity.

The question raised

Taxation of the described activities under Value Added Tax.

The DGT's ruling

School tutoring classes are exempt from VAT if the subjects taught are included in any curriculum of the Spanish educational system. The care and custody of minors does not meet the educational exemption if it is not an authorized entity, but the reduced rate of 10% could apply if it is considered social assistance, although the applicant does not appear to be a social establishment. If the requirements for exemption or the reduced rate are not met, the general rate of 21% shall apply.

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