- The Federal Fiscal Court (BFH) ruled that independent teachers providing direct educational services at vocational institutions are exempt from VAT if a legal relationship exists with the institution and the teacher personally instructs the students.
- The previous judgment by the Thuringian Finance Court was overturned, and the VAT assessments for 2010-2012 were reduced accordingly.
- The plaintiff, an independent driving instructor, provided practical driving lessons as part of vocational training programs recognized and funded by the Federal Employment Agency.
- The court clarified that such teaching services, when provided under contract with an accredited educational institution, qualify for VAT exemption under § 4 Nr. 21 UStG and the relevant EU directive.
- Costs of the proceedings were apportioned between the parties, with the defendant bearing a greater share from May 15, 2025.
Source: bundesfinanzhof.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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