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V3361-15 2 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Tax and commercial law training services may be VAT exempt if entity and subject matter requirements are met

A company has enquired whether its training services in tax, commercial, and insolvency law are exempt from VAT. The DGT has ruled that the exemption applies provided that both the subjective requirements regarding the entity and the objective requirements regarding the nature of the teaching are satisfied.

The question raised

Exemption of the services provided.

The DGT's ruling

The exemption requires that the activity be carried out by entities of public or authorized private law, the latter being understood as centers whose activities consist primarily of teaching included in a recognized curriculum. Likewise, teaching must consist of the transmission of knowledge and skills within an organizational framework, without a merely recreational character. The exemption does not apply if the subjects are not included in the curricula of the educational system. In this case, training in tax, commercial, and insolvency law is considered exempt.

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