Chess classes taught by self-employed professionals are subject to 21% VAT

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the tax nature of non-academic teaching activities. In this case, it analyzes whether the provision of chess classes by a self-employed professional can benefit from the exemption of Value Added Tax (IVA).

What the DGT has ruled

After analyzing the issue raised, the body has determined that the activity of teaching chess classes is not exempt from IVA. The ruling establishes that this type of training does not meet the necessary requirements to apply the exemption provided for in current regulations.

As it does not fit into the exemption scenarios for teaching, the professional must apply the general tax rate corresponding to this type of service, which is currently 21%.

What this means for you

If you are a self-employed professional carrying out teaching activities of a recreational, cultural, or leisure nature, such as chess, you must take into account that your services are subject to IVA.

This ruling underlines the distinction made by the Administration between regulated academic or professional training and teaching activities of a playful or hobbyist nature. For the professional, this implies that they must include 21% IVA in their invoices and comply with the obligations for settling this tax.

What you should do

It is fundamental that professionals teaching any subject verify whether their activity strictly fits into the exemption scenarios of Law 37/1992. Given that the Administration's interpretation is rigorous, it is necessary to assess the nature of each service provided to avoid errors in billing and possible sanctions for applying an incorrect tax rate.