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V4112-15 21 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Exam preparation training is VAT exempt if authorisation and educational requirements are met

An entity providing training for security force competitive examinations has enquired whether its services are exempt from VAT. The Directorate-General for Taxes (DGT) has ruled that exemption depends on the centre being authorised to teach a specific curriculum and the activity being focused on the transmission of knowledge rather than being merely recreational.

The question raised

Application to its activity of the exemption provided for in Article 20.One.9º of Law 37/1992.

The DGT's ruling

The exemption under Article 20.One.9º of Law 37/1992 requires both a subjective and an objective requirement. The center must be a private entity authorized or recognized to provide teaching included in a curriculum. Objectively, the activity must consist of the transmission of knowledge and skills between teacher and students, including an organizational framework, without having a merely recreational character. If both requirements are not met, the services are subject to the tax.

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