Potential VAT Simplifications for Private Teachers: A Look into the Future

• The tax exemption for educational institutions and private teachers is governed by § 4 No. 21 UStG.
• To qualify for tax exemption, the competent regional authority must certify that the institution prepares for a profession or an examination.
• If the private teacher is not considered an educational institution themselves, the institution must obtain the certification and confirm to the teacher that it is an educational institution.
• The EU Commission has issued a press release stating that EU member states are obligated to exempt private teachers from VAT for school and university education.
• Germany’s requirement for private teachers to obtain certification is seen as not in line with EU law and the interpretation of the European Court of Justice.
• The EU Commission has sent a reasoned opinion to Germany, giving them two months to respond and take necessary measures, or the case may be referred to the European Court of Justice.

Source: nwb-experten-blog.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.

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