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V4616-16 31 October 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Vocational training is VAT exempt if subjects are part of curricula and are not recreational in nature

A professional association has enquired whether the real estate marketing training courses it organises are exempt from VAT. The DGT has ruled that exemption depends on the subjects being part of formal curricula and the activity not being merely recreational.

The question raised

Value Added Tax treatment of the described activity.

The DGT's ruling

The exemption under Article 20.One.9º of the VAT Law requires compliance with a subjective requirement (authorized entity) and an objective requirement (non-recreational transfer of knowledge). Courses shall be exempt if the subjects are included in any curriculum of the educational system. If the entity provides the service in its own name, it is considered to have received and provided the subcontracted services itself, applying the same exemption conditions.

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