- The finance ministries of Baden-Württemberg and NRW have provided clarification on the VAT treatment of cake sales at schools and daycare centers.
- Starting from 2025, the public sector will generally be subject to VAT, but there are exceptions for certain sovereign tasks.
- Cake sales by changing groups of students, parent initiatives, or student representatives will not be subject to VAT if the services are not attributed to the school authority but to the respective student group or parent initiative.
- Cake sales at school festivals are generally not subject to VAT as long as the individual student group or parent initiative is not considered a sustainable entrepreneur.
- The same rules apply to occasional sales by students or parents, such as pizza sales, and to admission fees for performances by student groups in schools.
- The regulations also apply to daycare centers and other educational institutions.
- Exceptions apply only if the group regularly and sustainably organizes such events, but even in these cases, no VAT is due if the income in the previous year was less than €22,000 and is expected to not exceed €50,000 in the current year.
- Sales by students or parents are also not subject to VAT in schools, daycare centers, weekly markets, or other events outside of schools and daycare centers.
Source: datenbank.nwb.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
