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A company sought clarification on whether its management, leadership, and marketing training programmes for executives were VAT exempt. The DGT ruled that the exemption only applies if the activity is part of an official educational curriculum and is not merely recreational in nature.
Question raised: Taxation of this operation.
The exemption for professional training and retraining requires meeting two requirements: a subjective one, that the entity be a public or private law entity that is authorized (understanding that it is authorized if its activities are primarily teaching included in a recognized curriculum), and an objective one, that the activity consists of the transmission of knowledge and skills within an organizational framework, without being merely recreational. Management and leadership courses shall be exempt if they are included in any curriculum of the educational system according to the Ministry of Education or the Autonomous Community.
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