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V4041-15 16 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Training and catering services are VAT exempt, but boarding fees are taxed at 10%

An international school has requested a ruling on the taxation of its training, consultancy, catering, and boarding services. The DGT has determined that education and catering services are exempt, whereas boarding services are subject to the 10% rate.

The question raised

Taxation of the described operations. Application of the exemption to the services provided to the applicant in Phase I and Phase II.

The DGT's ruling

Teaching is exempt if carried out by authorized entities and involves the transmission of knowledge without a recreational character. Dining services provided by the center are also exempt as they are directly related. Boarding services are not exempt and are taxed at 10%. Phase I services (consultancy) shall be exempt if they are ancillary to the training, but shall be taxed at 21% if they constitute independent consultancy services. The deduction regime will depend on whether the boarding service is an ancillary activity or a separate sector.

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