It has been more than four years since the Supreme Court ruled on the government grant received by an HBO institution. Two things can be deduced from this judgment. Firstly, the government contribution for VAT does not constitute the consideration for the exempt educational performance. If an educational institution calculates its pro rata on the basis of turnover, the government grant is therefore left out of the pro rata fraction. Secondly, government grants and/or other funding sources do not constitute sufficiently objective and accurate data to calculate a pro rata based on actual use. If an educational institution calculates its pro rata on the basis of actual use, the government grant must therefore also be excluded from the pro rata.
Source EY
