Calligraphy and topography classes are only exempt from VAT if included in official curricula

The exemption from Value Added Tax (VAT) on teaching services is not automatic for any training activity. Recently, the Dirección General de Tributos (DGT) has delimited the necessary criteria for classes taught by individuals to benefit from this exemption regime.

What the DGT has ruled

The ruling analyzes whether specific services, such as calligraphy or topography classes, can qualify for the exemption provided in Article 20.Uno.10º of Law 37/1992. The Administration's criteria establish that, for these services not to be taxed at the general rate, three requirements must strictly concur:

• Teaching by individuals: The service must be provided directly by an individual.
• Curricular content: The subjects being taught must be included in the study plans of any level of the official education system.
• Nature of the activity: The activity must not require registration in the business or artistic activity schedules of the Impuesto sobre Actividades Económicas (IAE).

If these three provisions are not met simultaneously, the teaching services will be subject to the general tax rate of 21%.

What this means for you

If you are a professional providing private lessons, the interpretation of the regulations is decisive for your invoicing. It is not enough for the activity to be educational or training in nature; the subject must have backing from the official education system to avoid the application of VAT. In the event that the subject taught is considered a professional or artistic activity that requires registration in the IAE, or is not part of an official curriculum, you must apply the 21% rate on your invoices.

What you should do

It is necessary to verify whether the subjects you teach are integrated into the official study plans of the various educational levels. Likewise, the nature of the activity must be checked in relation to the IAE to ensure that the applied tax treatment is correct. Given the specificity of these requirements, each situation must be analyzed to determine whether the exemption is applicable or if tax must be paid at the general rate.