When it comes to VAT
The updated policy, which came into effect on February 12, 2025, contains several changes. In this article, we discuss the main changes.
Public educational institutions were considered government institutions, which meant their educational activities were outside the scope of VAT. Following a 2020 Supreme Court ruling, public education is considered entrepreneurship, making VAT exemption and the right to deduct VAT (pro rata calculations) applicable.
Education provided by international, foreign, and embassy schools based in the Netherlands often does not fall under the supervision of the Education Inspectorate. This hinders the application of the VAT exemption for education. The VAT exemption now also applies to this education as long as the relevant education is supervised by a foreign authority or a recognized international accreditation organization. The recognized international accreditation organizations are listed in Appendix 1 of the 'Regulation on the Designation of International and Foreign Schools'.
The VAT exemption for education initially applied to physical education. Technological developments have made other forms of education possible, such as distance education (electronic and online education). It is now explicitly confirmed that the VAT exemption can also apply to these forms of education, provided there is interaction between teacher and student.
Thesis guidance
Non-education-content-related guidance (supervision, instilling the desired study rhythm, teaching study discipline, etc.) is currently not considered education and therefore does not fall under the VAT exemption for education. Because it is not easy in practice to separate non-education-content-related-guidance from education-content-related-guidance, it is now approved that non-education-related specific homework or study guidance also falls under the VAT exemption.
Thesis supervision is only VAT exempt if it is offered as part of VAT-exempt education.
Sign Language Education
Language education was already considered general education when it is not specifically aimed at a particular profession. In that case, the education is exempt from VAT. In the updated policy, sign language education is also considered a form of language education and therefore VAT exempt.
VAT exemption already applies to final exams in education. Admission exams are now also covered by the exemption, provided they are administered by a recognized educational institution.
If you have any questions about this topic or if you would like to discuss the topic further, please do not hesitate to contact us at info@vatpartners.com
21-02-2025 - This document contains explanatory notes for all transactions subject to the 9% VAT rate on goods and services.
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