The VAT exemption for explanations in study centers has been extended, covering the lessons on subjects of school and higher education. However, study monitoring services, free time activities or simple surveillance are not included in this measure.
This clarification arises following the State Budget to 2024 (OE2024), through an orientation issued by the Tax and Customs Authority (AT). The objective is to define which services benefit from the exemption and which can be considered deductible education expenses in the IRS.
Previously, the VAT exemption applied only to explanations provided by teachers individually. With this change, the study centers are also covered by the exemption, provided they meet the established criteria.
The VAT question is relevant in the context of IRS, as only those that are exempt from VAT or subject to the reduced rate are considered only. In the case of study centers, the normal rate of 23% was applied, making it difficult to deduct these expenses.
According to the OT, only services that correspond to lessons taught on school or higher education may benefit from the exemption. These lessons must be aligned with the curriculum planes and official syllabus.
“The exemption thus covers all the taxable value of the services of services consisting of lessons given on school or higher education,” the AT’s guidance indicates. Monthly, isolated classes, registration fees and insurance are included, provided that these costs are directly related to teaching.
The lessons can be taught by teachers, explanators or explanation centers, provided they follow the criteria established by the national education system. This point reinforces the need for framing within official school programs.
On the other hand, services that do not fit the concept of lessons on school or higher education do not benefit from exemption. AT clarifies that activities such as follow -up to the study or mere surveillance of students are not covered.
According to it, the same applies to child custody services and free time occupation. Playful, sports or recreational activities also do not enter the scope of the exemption provided for in the legislation.
The teaching of tongues, music or other areas that do not integrate official curriculum plans is not included in the VAT exemption. Thus, only the subjects contemplated in the education system benefit from this measure.
In addition, the provision of teaching materials or other pedagogical resources remains subject to normal taxation and cannot be considered for exemption purposes.
The classes or training actions taught by trainers are also not covered. The measure has a clear focus on traditional teaching and official syllabus.
This distinction between eligible and not eligible for exemption services is essential to prevent wrong interpretations of legislation. The entities providing these services must be aware of the applicable rules.
Taxpayers wishing to deduct education expenses in the IRS should verify that the services frequented fulfill the criteria defined by the OT. Only then can they ensure that these expenses are accepted in the annual income statement.
Exemption from VAT exemption represents a benefit to many families, reducing charges with explanations. However, it is essential to understand the limits of the measure and ensure that only eligible services are included in tax deductions.
The clarification now issued by the OT intends to give legal certainty to entities and taxpayers. Thus, it becomes easier to distinguish between the services that benefit from exemption and those that continue to be subject to normal taxation.
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