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V3401-20 23 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio prestado por vía electrónica

Online training services may be VAT exempt if not classified as services provided by electronic means

A foundation sought clarification on whether its online training programmes were VAT exempt due to their link to formal curricula. The DGT explains that the exemption depends on whether the service constitutes teaching via the internet or a service provided by electronic means.

The question raised

Applicability of the exemption under Article 20.one.9º of the Value Added Tax Law to the described training services, provided that they concern subjects included in some curriculum of the Spanish educational system.

The DGT's ruling

The exemption under Article 20.one.9º does not apply to services provided by electronic means, which are taxed at 21%. A service is provided by electronic means if it is automated and requires minimal human intervention, such as recorded courses or file downloads. In contrast, it is an educational service if the electronic network is merely the means of communication between teacher and student. For non-electronic training to be exempt, it must be provided by authorized entities and concern subjects included in the curricula of the Spanish educational system, without a recreational character.

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