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V3493-20 2 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

English classes may be VAT exempt if provided as part of a curriculum

A civil society sought clarification on whether its extracurricular English classes were VAT exempt, given that it was not an authorised centre. The DGT ruled that the exemption applies if the activity constitutes teaching and is integrated into a curriculum, regardless of the centre's formal authorisation.

The question raised

Applicability of the exemption under Article 20.One.9º of the Value Added Tax Act to the English classes provided by the applicant.

The DGT's ruling

The exemption under Article 20.One.9º of the VAT Act requires both a subjective and an objective requirement. The center is considered authorized if its primary activity is teaching included in a recognized curriculum. The objective requirement demands that the activity consists of the transmission of knowledge and skills within an organizational framework, without a merely recreational character. As English is a subject within curricula, the exemption applies if these requirements are met.

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