Tax advantage for education remains in place
VAT exemption for educational services: Old certificates remain valid
With the Annual Tax Act 2024, the legislator has revised the VAT treatment of educational services, at least formally. From January 1, 2025, amended rules on tax exemption will apply in order to meet the requirements of EU law. For educational institutions, however, this means one thing above all: the all-clear.
What stays the same – and what changes?
The services that were previously exempt from VAT will remain so in the future. The decisive factor is that they are services that directly serve school or educational purposes. Providers will continue to require a certificate from the competent state authority in order to be able to claim tax exemption.
What has changed, however, is the content of these certificates: Previously, they had to certify that the institution properly prepares students for a profession or an examination under public law. In future, it will be sufficient for them to provide general schooling, higher education, training, further training or retraining.
Good news from the Bavarian State Tax Office
In a recent ruling (dated January 17, 2025, ref. S 179,1,1-21/4 St 33), the Bavarian State Tax Office clarifies: Anyone who has already received a valid certificate before January 1, 2025 can continue to rely on it. A new application is not necessary as long as no expiration date has been reached or the certificate is not revoked.
What does this mean for educational institutions?
In practice, this means a considerable administrative relief. Establishments that already have a corresponding certificate do not have to submit new applications or prepare for time-consuming checks. At the same time, however, providers should continue to keep an eye on whether their services actually fall under the conditions for VAT exemption.
Recommendation for action:
- Old certificate available? Then there is no need for action.
- Nevertheless, regularly check whether all services actually fall under the tax exemption.
- If anything is unclear, tax advice is recommended – especially for mixed benefits or new offers.
