- The German Federal Fiscal Court ruled that services provided by a prevention and personality trainer at schools can be exempt from VAT if they serve the education of children and adolescents. The court emphasized that such activities contribute to the physical, mental, and moral development of young people. The absence of a formal recognition process does not preclude VAT exemption if the institution’s overall business objective is focused on educating children and adolescents. The court rejected the tax office’s argument that the plaintiff could not rely on EU law, stating that the lack of national implementation does not prevent such reliance. The court concluded that a “facility” under VAT law can include natural persons if they fulfill a specific function similar to public law entities. The ruling ensures VAT neutrality for the plaintiff compared to public institutions providing educational services.
Source: blogs.pwc.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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