On 3 October 2018, Advocate General SZPUNAR gave his Opinion in case C‑449/17 (A & G Fahrschul-Akademie GmbH), regarding the question if a driving school is exempt from VAT or not.
Unofficial translation
Facts (simplified):
- The A & G Fahrschul-Akademie GmbH is a German company operating a driving school. The company declared its VAT-related transactions as part of its business.
- However, the company later applied for an adjustment of its own VAT Returns, arguing that its activities were actually exempt from VAT, based on the exemption for ‘educational services’ (article 132(1) i and j of the VAT Directive).
- The German tax authorities rejected the application of the company.
- The German Court asked several questions to the European Court of Justice, but the following question is the key question:
- Does the concept of school and university tuition in Article 132 (1) (i) and (j) of the VAT Directive include driving instruction for obtaining category B and C1 driving licenses?
Conclusion:
The AG concludes the following:
Article 132 (1) (i) of the VAT Directive must be interpreted as meaning that driving instruction to obtain categories B and Cl is not covered by the concept of school and university education within the meaning of this provision.
Source: Curia (German)
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