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Supervision can be exempt from VAT

Supervision can be exempt from VAT


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FG Münster: Discussions were professional training

Supervision can be exempt from VAT as a professional training. This is the case when the discussions are about questions, backgrounds and options for action, as the Finanzgericht (FG) Münster decided in a recently published judgment of March 12, 2019 (Az .: 15 K 1768/17 U ).

Supervision is usually a conversation with work teams, for example to work through the causes of friction losses and ultimately to avoid them. In social or health facilities, it is also about the personal involvement of employees in the relationship with customers, caregivers or patients, which can lead from a targeted, such as educational work.

The applicant had provided supervision for various welfare institutions and child and youth welfare organizations. In the dispute years 2013 and 2014, their turnover for this activity was a good 26,000 euros each.

The tax office said that this income was subject to VAT. The supervisor's lawsuit against this was successful.

As a justification, the FG emphasized that the supervision talks were not about the private problems of the participants, but about "action and behavioral skills" in dealing with the respective clientele. Mostly, concepts for dealing with certain people in need of care or adolescents had been developed.

Ultimately, the subject of the supervision units was “the imparting of the skills required in everyday work”. These are then also applicable to future work. The FG Münster emphasized that such skills can also help privately in individual cases.

The supervisions were therefore neither "events with a mere leisure character" nor sales tax advice. Rather, it is about teaching within the framework of professional training. This is free of VAT.

Companies and institutions that do not pay any sales tax themselves benefit from the judgment - for example in the areas of education, health and social affairs. Companies subject to VAT can recover a VAT added to the supervision invoice by means of the so-called input tax deduction. mwo

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