Live online training may be exempt from VAT under specific conditions

The nature of digital training services has raised doubts regarding their tax treatment, especially in the distinction between educational services and services supplied electronically. The Directorate General of Taxes (DGT) has recently clarified the scope of the Value Added Tax (IVA) exemption for classes taught in real time.

What the DGT has ruled

The advisory body establishes that teaching services provided live by a teacher via the internet are considered educational services and not services supplied electronically. This distinction is fundamental for the application of the exemption provided in Law 37/1992.

For this exemption to be applicable, the DGT points out that two essential requirements must be met:

• Subjective requirement: The services must be provided by entities that hold the corresponding authorization.
• Objective requirement: The subjects taught must be part of a curriculum within the official education system and must not be merely recreational in nature.

The resolution warns that if the service is provided in an automated manner or through access to recorded content, the activity is classified as a service supplied electronically, which prevents the application of the exemption.

What this means for you

If your company develops online training activities, the classification of your services will determine your tax burden. It is not enough for the class to be live; the key lies in the nature of the content and the status of the entity providing it. If your courses are based on pre-recorded content or self-learning platforms without direct, real-time interaction, you must apply the corresponding IVA.

What you should do

Companies operating in the digital training sector should conduct a detailed analysis of their business model. It is necessary to verify whether the training programs are integrated into official curricula and whether the delivery structure guarantees direct interaction between the teacher and the student. Given the complexity of the subjective and objective requirements, it is recommended to assess each case individually to ensure compliance with current regulations.