How does VAT work in training activities?
Posted: Thu Dec 26, 2024 4:53 am
As we have indicated in previous articles, there are a number of activities that are exempt from Value Added Tax . This means that those who carry them out do not have to apply VAT on their service invoices. These activities include training activities.
What the legislation tells us in these cases
The Tax Law establishes that "training activities for the education of children and youth, the care and custody of children, school, university and postgraduate education, language teaching and professional training and retraining will be exempt from VAT". For the training activity to be exempt, it must teach a subject included in one of the study plans of any level and grade of the Spanish educational system.
It will be the responsibility of the Ministry of Education or the autonomous bodies to determine whether or not a subject is included in any curriculum of the educational system for the purposes of applying the exemption.
In this way, the following will be exempt denmark whatsapp shopping data from VAT (as long as these activities are not merely recreational in nature): extracurricular classes , activities such as languages, dance, theatre, cooking, history, science, and geography, among others.
As regards sports courses , the exemption is conditional on the fact that the course is taught by a sports federation, a public entity, the Spanish Olympic Committee , the Paralympic Committee or a private sports entity of a social nature. In any other case, VAT must be applied at the general rate of 21%.
Therefore, activities taught in gyms or dance classes, for example, are considered subject to tax and not exempt.
What the legislation tells us in these cases
The Tax Law establishes that "training activities for the education of children and youth, the care and custody of children, school, university and postgraduate education, language teaching and professional training and retraining will be exempt from VAT". For the training activity to be exempt, it must teach a subject included in one of the study plans of any level and grade of the Spanish educational system.
It will be the responsibility of the Ministry of Education or the autonomous bodies to determine whether or not a subject is included in any curriculum of the educational system for the purposes of applying the exemption.
In this way, the following will be exempt denmark whatsapp shopping data from VAT (as long as these activities are not merely recreational in nature): extracurricular classes , activities such as languages, dance, theatre, cooking, history, science, and geography, among others.
As regards sports courses , the exemption is conditional on the fact that the course is taught by a sports federation, a public entity, the Spanish Olympic Committee , the Paralympic Committee or a private sports entity of a social nature. In any other case, VAT must be applied at the general rate of 21%.
Therefore, activities taught in gyms or dance classes, for example, are considered subject to tax and not exempt.