Yoga certification courses will be exempt from VAT, but sports classes will not

The nature of the service provided in the field of yoga determines its tax treatment for Value Added Tax (IVA). Providing professional training to obtain a certification is not the same as offering sports practice sessions for physical well-being.

What the DGT has ruled

The Dirección General de Tributos (DGT) has clarified the application of the exemption provided for in Article 20.One.9º of Law 37/1992. The criterion establishes that training intended to obtain a yoga teacher certification is exempt from VAT, given that said activity is integrated into the National Catalogue of Professional Qualifications.

However, the ruling specifies that providing yoga classes intended for mere sports practice is not considered professional training. In these cases, the service does not benefit from the exemption and must be taxed at the general rate of 21 percent.

What this means for you

This criterion has direct implications depending on the taxpayer's profile:

• Self-employed instructors: They must strictly differentiate the nature of their services. If the client hires a course to certify as an instructor, VAT does not apply. If the client hires classes to practice the discipline, they must include 21% VAT in the invoice.
• Training centers and academies: It is imperative that accounting and billing distinguish between professional qualification programs and leisure or sports activities to avoid errors in the tax settlement.

What should be done

To ensure compliance with the regulations, it is necessary to perform a precise classification of the service offering. Course documentation must prove that they are part of a professional qualification itinerary if the exemption is to be applied. In the case of sports practice classes, the general rate must be applied to avoid possible requests from the Administration.