Business tip 7. Freelance English teacher in Spain: no VAT
Friday, March 19, 2010 @ 1:32 PM
Classes should be taught by individuals not by companies. These is the legal treatment:
1 .- The teacher must sign up for the general treasury of social security in the autonomous regime.
2 .- The teacher needs to be registered for taxes under the Second Section (Professional Activities) within the Economic Activities Tax catalogue.
3.- Tax treatment:
A) Provision 20 of the VAT Act establishes that these services are exempt from VAT provided they are not registered for taxes purposes as a company.
2) Income tax must be reported on the annual income tax
It requires the keeping of books about expenses, revenues, capital goods and amortization tables among others.
By Jesús Castro
www.costaluzlawyers.es
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