Supreme Tax Court: Knowledge test for prospective taxi drivers exempt from VAT

In a recent decision the Supreme Tax Court held that the local knowledge test for aspiring taxi drivers is a VAT-free service. Although the tax office and the court of first instance had ruled otherwise for several reasons, the Supreme Tax Court referred to the overriding EU VAT Directive for its conclusion in the case of dispute. Local knowledge tests for prospective taxi drivers are tax-free if Section 4 No. 22 Letter a UStG is interpreted in accordance with the guidelines as a training measure with direct reference to a profession.

Sources:

• PwC DE
• haufe.de

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