- Education institution X provided vocational education and adult education.
- The education was mainly funded by the Ministry of Education.
- Students under 18 did not pay for their education, but older students paid tuition fees.
- X provided both taxable and exempt services.
- X requested additional VAT deduction based on the pro rata method.
- The tax authority argued that some of X’s services were non-economic.
- X appealed, claiming that all their education should be considered economic activity.
- The court agreed with the tax authority, stating that services to students under 18 were non-economic.
- The contributions received by X did not cover the full costs and were more like a fee than a payment for services.
- The court concluded that there was no direct link between the payment and the service provided.
Source: futd.nl
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.
