Language camps will be taxed at 10% or 21% VAT depending on their nature

The determination of the applicable tax rate for language camps depends on the composition of the service and the location where the activity takes place. The Dirección General de Tributos (DGT) has specified that these operations are considered a single provision in which accommodation and catering act as ancillary elements to the main teaching service.

What the DGT has resolved

The criteria establish that taxation varies according to the location and nature of the program:

• Location: If the camp is held in Spanish territory, the operation will be subject to VAT. If the activity is carried out entirely outside of Spain, it will not be subject to the tax.
• Exemptions: Services may be exempt from VAT provided that the subjects taught are part of an official curriculum and the educational center has the corresponding authorization.
• Tax rates: If the requirements for exemption are not met, the reduced rate of 10% will apply if the program is classified as social assistance. In any other case, the applicable rate will be the general rate of 21%.

What it means for you

For companies organizing these types of activities, this criterion defines the tax burden of their services and, consequently, their right to deduct the VAT incurred. The correct classification of the camp—whether as a social assistance service, an exempt educational activity, or a general service—is decisive for the cost structure and the final price to the consumer.

What should be done

It is necessary to analyze the structure of each program offered to determine if it meets the requirements for exemption based on an official curriculum. Likewise, the nature of the program must be verified to correctly apply the 10% or 21% rate as appropriate, avoiding errors in the tax settlement. Each business model must be assessed individually to ensure compliance with current regulations.