5.1 Non-subject activities and activities exempt from VAT

They are not subject to VAT among others and complying with the requirements determined in each case:

1. The transfer of a set of corporeal and incorporeal elements that, forming part of the business or professional assets of the taxpayer, constitute an autonomous economic unit for the transferor capable of developing an economic activity by its own means. It does not include the mere transfer of assets.

2. Operations carried out by Public Administrations (unless they act as a commercial company).

3. Deliveries of goods and services for promotional purposes.

4. Services provided by individuals under a dependency regime, derived from administrative or labor relations, ordinary or special.

5. Certain self-consumption of goods and services.

6. Certain administrative concessions and authorizations.

7. The provision of services free of charge that are obligatory for the taxpayer by virtue of legal regulations or collective agreements, including telegraph and telephone services provided under a franchise regime.

8. Services provided to worker cooperatives by their members and those provided to other cooperatives by their worker members.

9. Operations carried out by irrigation communities for the management and use of water.

10. The delivery of money as consideration or payment.

Various ## exemptions ## are contemplated in VAT .

These are internal exemptions (those located in the territory of VAT ), among others:

• Teaching in authorized public or private centers and private classes by individuals on subjects included in the educational system's curricula. Childcare services at the educational center provided during inter-teaching time.

• Assistance to individuals by medical professionals and health services.

• Professional services, including those whose consideration consists of royalties, provided by visual artists, writers, literary and graphic collaborators.

• Operations and provision of services related to insurance, reinsurance and capitalization.

• Mediation services provided to individuals in various financial transactions.

• Leasing of housing and delivery of rural and non-building land, as well as second and subsequent deliveries of buildings.

• Delivery of postage stamps and stamped legal tender instruments.

Among the exemptions related to foreign trade; the delivery of goods shipped and transported outside the Spanish peninsular territory and the Balearic Islands, whether destined for other Member States or third territories.