Is a trainer or teacher subject to VAT?
Verified 05 March 2021 - Directorate for Legal and Administrative Information (Prime Minister)
Training providers and teachers are exempt from VAT on request, provided they fulfill certain conditions.
What applies to you ?
Provision of continuing vocational training
Do you provide continuing vocational training? You are exempt from VAT if you meet the following conditions:
- You made a initial declaration of activity
- You are up to date on the annual deposit requirement of the educational and financial balance sheet (unless it is a newly created organization)
- You have obtained the tax certificate, through the form 3511 to be sent by registered letter with acknowledgement of receipt to the SRC (Regional Service for Vocational Training) of the Dreets: titleContent.
The certificate must be issued within 3 months of receipt of the application. Otherwise, it shall be deemed to have been granted.
Please note
the completion of a skills assessment is covered as continuing vocational training.
Provision of services or supplies of goods
These benefits must be closely linked to continuing vocational training.
This may involve the provision of accommodation and food for trainees or the provision of educational materials.
These supplies are exempt from VAT.
Invoicing
Upon receipt of the VAT exemption certificate, the training provider must no longer charge VAT on his exempt activities to his clients, whatever their tax regime (taxable or not).
Invoices must be made without mention of tax.
Therefore, the training organization does not have the right to deduct. This means that VAT cannot be deducted (and therefore not recovered) from purchases of goods and services made for the purposes of the training activity.
On the other hand, transactions excluded from the scope of the exemption are invoiced with VAT under the usual conditions and give the customer the right to deduction on business purchases.
This support is provided for the benefit of job seekers. These may include, for example, training or access to jobs provided by Pôle emploi.
This accompanying material is exempt from VAT.
Billing:
Upon receipt of the VAT exemption certificate, the training provider must no longer charge VAT on his exempt activities to his clients, whatever their tax regime (taxable or not).
Invoices must be made without mention of tax.
Therefore, the training organization does not have the right to deduct. This means that VAT cannot be deducted (and therefore not recovered) from purchases of goods and services made for the purposes of the training activity.
On the other hand, transactions excluded from the scope of the exemption are invoiced with VAT under the usual conditions and give the customer the right to deduction on business purchases.
These courses and lessons are exempt from VAT.
What lessons are involved?
The following are the lessons to be learned:
- School education
- University education
- Vocational education
- Art education
- Sports education
They must be provided by natural persons who are paid directly by their pupils.
Invoicing
Upon receipt of the VAT exemption certificate, the training provider must no longer charge VAT on his exempt activities to his clients, whatever their tax regime (taxable or not).
Invoices must be made without mention of tax.
Therefore, the training organization does not have the right to deduct. This means that VAT cannot be deducted (and therefore not recovered) from purchases of goods and services made for the purposes of the training activity.
On the other hand, transactions excluded from the scope of the exemption are invoiced with VAT under the usual conditions and give the customer the right to deduction on business purchases.
FYI
courses and lessons given by companies are not exempt from VAT.
This operation is not part of the initial or continuing training activity. They are taxable for VAT purposes in the usual conditions.
This operation is not part of the initial or continuing training activity. They are taxable for VAT purposes in the usual conditions.
This operation is not part of the initial or continuing training activity. They are taxable for VAT purposes in the usual conditions.
See point 4-4°
Obtaining the certificate for VAT exemption