VATupdate

Share this post on

VAT levied on commercial providers of supplementary education not desirable due to distortion of competition

  • State Secretaries Paul of Education and Van Oostenbruggen of Finance oppose levying VAT on commercial tutoring agencies, arguing that it would distort competition between profit-making and non-profit education providers.
  • Historically, non-profit educational services were exempt from VAT until 1993, and reintroducing VAT on commercial providers would recreate competition issues that had been addressed previously.
  • The ministers also highlighted that budget rules prevent a specific allocation of revenue from such VAT levies to publicly funded education, meaning that any funds generated would not effectively benefit the public education system.

Sources

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.

Sponsors:

VATIT Compliance

Advertisements: