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V3255-18 20 December 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption in education depends on whether it is carried out as a professional or business activity

An individual seeks clarification on VAT and IAE taxation when teaching sports marketing at a university. The DGT explains that VAT exemption varies depending on whether the activity is classified as professional (private tutoring) or business-related (an educational centre).

The question raised

Taxation regarding Value Added Tax and Economic Activities Tax for the activity subject to consultation.

The DGT's ruling

If teaching is performed personally by the natural person, it is a professional activity and may be exempt under Art. 20.One.10º if the subject is included in study plans and does not require registration in business registries. If performed within an organization, it is a business activity and the exemption under Art. 20.One.9º requires it to be an authorized entity and that the subject is included in study plans. In both cases, the activity is subject to VAT as it constitutes a provision of services.

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