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V3360-15 2 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Leadership courses may be VAT exempt if they meet authorised entity and educational content requirements

A business owner providing leadership courses has enquired whether their services are exempt from VAT. The DGT has ruled that exemption depends on the entity being authorised and the teaching not being merely recreational.

The question raised

Taxation under Value Added Tax.

The DGT's ruling

The exemption for educational services requires a subjective requirement, that the entity be of public or private law and authorized (whose purpose is primarily teaching according to curricula), and an objective requirement, that the activity transmits knowledge and skills without being merely recreational. Leadership courses that include subjects such as mathematics or marketing are exempt if these points are met, including accommodation if it is ancillary to the educational service.

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