The term exemption occurs when the tax or tribute is applicable (meeting its requirements) there is an article or regulation within the regulatory legislation of the tax or tribute that tells us that in that case the tax does not have to be paid (totally or partially).

In this case, the taxable event of the tax occurs but for other reasons, the obligation is not finally generated.

Watch out! Being exempt is not the same as not being subject, so although the payment obligation is not created, there may be other inherent obligations that must be fulfilled in relation to the tax in question.

Let’s go with an example:

Suppose we want to give English classes at an official language center. As this case is included among those indicated by VAT legislation, it although subject to the tax, would not have to be paid.

We hope this information is very useful to you.