Religious community A carried out free educational activities and, among other things, sold accommodation and meal services, club and camp services, as well as books and magazines. A had organized a free staff meal for his staff. Staff meals, as well as free school meals and meals for sale, were prepared in the schools’ kitchens. Some of the staff meals of the teaching staff were supervision meals in nature.
In the case, it was to be decided whether the non-remunerated personal meal service of the teaching staff was a question of self-use of the service, comparable to paid services, and whether it had to be considered in the capacity of a business operator that falls within the scope of the VAT Act.
The Basic Education Act did not require the organization of meals for the teaching staff or that they be free of charge. The personal benefit obtained from the teaching staff’s free meals, including supervision meals, could not be considered secondary to A’s needs. Since the staff meal service was not considered for the purpose of the educational activity carried out by A, it also did not have to be considered part of this educational activity, and the VAT treatment of the educational activity was not relevant in the case. The teaching staff’s free staff meal services were the private use of the staff, which was equivalent to a transfer for consideration, taking the service into one’s own use.
Therefore, the staff meal service did not have to be considered as an activity outside the scope of the VAT Act, but in the capacity of a business operator, taking into account A’s business. Since the personnel meal service is considered taken for own use even when it is not handed over in connection with taxable business, A had to pay VAT on it.
Source kho.fi
