The case concerns educational services offered by a private institution, focusing on language instruction for children and teenagers.
The court determined that the educational services provided by the private institution, which included language courses for children and teenagers, fall under the VAT exemption according to § 6 Abs. 1 Z 11 lit. a UStG 1994, as they pursue a comparable objective to public schools. The court also emphasized that the absence of a certification from Austrian authorities did not preclude the application of the tax exemption.
Furthermore, the court pointed out that the national regulatory authority had exceeded its discretion by not ensuring the full effectiveness of the directive, resulting in the private institution’s right to directly invoke Article 132(1)(i) of the VAT Directive (MwStSystRL) for the purposes of achieving direct application of the exemption. As a result, the educational services provided by the private institution were deemed to be exempt from taxation.
Source: gv.at
