A company devoted to education developed a method of learning mathematics, programming, reading and comprehension for children from 4 to 14 years old. Educational services are VAT exempt in Spain, however, there is some uncertainty in the VAT treatment when digital processes are used to deliver the services.

As part of the services the company provides, the students use digital tablets or computers as part of their learning whilst the teaching team individually monitors the progress of each student. The VAT exemption is not typically applicable to education services classified as services provided electronically. The key is whether the teachers are fundamental to providing the educational services and whether the use of tablets and computers is just auxiliary in nature.

We issued a policy to the company to protect it against any unexpected challenge from the Spanish tax authorities.