No VAT Exemption for Foundation’s Staff Lending to Primary Schools

• Lending out personnel is generally subject to VAT
• Lending teaching staff may qualify for a VAT exemption under specific conditions
• One key condition is that the lending organization must be recognized as an educational institution
• In the Netherlands, educational services offered by recognized institutions are exempt from VAT
• The exemption is intended for organizations directly involved in education and recognized by an authority
• A foundation lending qualified teaching staff to primary schools claimed this VAT exemption
• The Tax Authorities argued that the services were VAT-taxable personnel provision, not exempt educational services
• The Court of Den Bosch ruled that the VAT exemption did not apply as the foundation was not recognized as an educational institution
• The court’s decision highlights the strict requirements for the VAT exemption on educational services
• Service providers not recognized as educational institutions have limited options for claiming the VAT exemption
• No penalty was imposed due to a defensible position by the foundation

Source: vanoers.nl

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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