Are examination services purchased from a training company exempt from VAT?

• A company offering vocational training courses requested an individual interpretation from the Director of National Tax Information to determine whether examination services purchased from an accreditation company and other related services were exempt from VAT as an integral part of the training services provided by the company.
• The tax authority found that the examination services do not meet the education requirements and are therefore not tax exempt.
• The company filed a complaint and the Provincial Administrative Court overturned the tax authority’s interpretation, arguing that accreditation services are necessary to complete the educational process and are therefore tax exempt.
• This decision is positive for taxpayers and highlights the importance of considering the comprehensiveness of services when determining whether they are exempt from VAT.

Source MDDP

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