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V3440-16 20 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Invoicing for language course fees to individuals is not mandatory and monthly summary accounting entries are permitted

A language academy has enquired whether it must issue invoices for student fees and if it can make a single monthly accounting entry for all collections. The DGT has ruled that there is no obligation to invoice individuals and that summary entries are possible subject to certain requirements.

The question raised

Exemption from the obligation to issue an invoice for the collection of fees from students. Validity of a single monthly entry for the total collection of said fees, which are collected on the same date, using the complete list of the batch of receipts delivered to their banking entity as a breakdown. Valid type of support to substantiate the income recorded in that single accounting entry.

The DGT's ruling

Language teaching carried out by authorized private entities is exempt from VAT. There is no obligation to issue an invoice when the recipient is an individual not acting as an entrepreneur or professional. Making a single monthly entry in the register of issued invoices is valid, provided that the requirements of Article 63 of the VAT Regulations are met and it is carried out within a maximum period of seven days from the performance of the operations. Income may be substantiated by any means of proof admitted in Law.

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