- Student companies in Baden-Württemberg will not pay VAT.
- This is due to an initiative by the Ministry of Finance Baden-Württemberg.
- The initiative was successful with the federal government and other states.
- The decision ensures that student companies at public schools in Baden-Württemberg will not be affected by the change in VAT regulations starting in 2027.
- The change in VAT regulations is due to European law, which requires public entities to pay VAT more frequently.
- Student companies in Baden-Württemberg are usually considered public entities because the state is also the school authority.
- The Ministry of Finance states that student companies are exempt from VAT because their sales are part of educational services.
- The exemption applies to student companies that are legally dependent on the school and integrated into the school’s organizational structure.
- Independent student companies, such as those organized as a general partnership, are not exempt from VAT.
- However, independent student companies may be eligible for the small business exemption under certain conditions.
- Finance Minister Dr. Danyal Bayaz emphasizes the importance of student companies in teaching financial and economic concepts.
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.
