2024 Annual Tax Act: VAT Exemption for Educational Services in Germany

• The national VAT exemptions in the education sector have been contrary to Union law for some time, causing legal uncertainty for providers
• The Annual Tax Act 2024 plans to completely redraft sec. 4 no. 21 of the German VAT Act to comply with EU law
• The draft bill removes the unpopular certification procedure and exempts school and university education, vocational training, and retraining services
• The term “institution” covers both profit and non-profit providers, including public and private educational institutions
• Private teachers providing school and university education are also exempt from VAT
• Whether educational services are provided in person or online is irrelevant for VAT exemption.

Source: kmlz.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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