No higher input tax deduction for educational institutions

• The Court of Appeal of The Hague ruled that there is no connection between the costs of economic and non-economic educational activities.
• X wrongly claims VAT deduction for non-economic activities.
• X provides secondary education, with 80% financed by a government grant.
• The court ruled that X’s appeal is unfounded and the pre-pro-rata method is in line with the aims and principles of the VAT Directive.

Source Taxlive

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