Lessons do not serve any school or educational purpose. At least in our case today.

Services provided by private schools and other general or vocational education institutions that directly serve a school or educational purpose are exempt from VAT.

A martial arts school from the Saarland wanted to benefit from this regulation and declared its sales as tax-free without further ado. However, the tax office proved combative and pulled out the red pencil:

-> taxable at 19 %

The school wanted to parry the attack and appealed to the tax court.

Black robe beats black belt

However, the financial judges put the school operator on the mat in the legal melee:
🥋 Martial arts lessons do not serve any school or educational purpose.
📚 The school does not teach a broad and diverse range of subjects.
👮‍♂️ There is no evidence of special job-related courses (e.g. for security forces, police).
💶 The sales are therefore taxable at 19 %.

The judges of the Federal Fiscal Court will soon have to decide whether this victory will remain.

The case shows: The requirements for VAT exemption are narrower than often assumed.

👉 Would you like to know how your services should be classified for VAT purposes? Talk to us. We will be happy to advise you: www.wsb-berater.com

#Martial arts school #Court rulings #VAT #TTax law #Federal Fiscal Court #WSB