New BMF Letter on Digital Education: Partial Progress, VAT Exemptions Remain Limited

• Since July 2024, digital educational service providers must comply with a BMF letter excluding pre-produced content from VAT exemption.
• The BMF issued a new letter on August 8, 2025, repealing the previous one but maintaining the same provisions for pre-produced content, live streaming, and hybrid offerings.
• VAT exemptions apply only to live and hybrid events, not to recorded or pre-produced content.
• Controversial provisions on uniform and independent services have been removed, correcting previous errors.
• The new rules assess services based on the nature of the transaction, not the remuneration agreement.
• The letter applies to all open cases, but providers can refer to the old letter until the end of 2025.
• The combination of live teaching and recordings can potentially be fully VAT exempt, with assessments made on a case-by-case basis.

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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