VAT rates applicable to training and education

Verified 30 August 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Training and education services are mostly exempt from VAT. This is particularly the case for school and university education, continuing vocational training (subject to conditions) or private courses and lessons. Other supplies are subject to VAT at 20%.

Educational activities are supplies of services which may be subject to VAT provided that they correspond to an economic activity carried out for consideration. The applicable VAT rate is 20%.

Examples include driving lessons, bridge classes, and teaching certain sports (e.g. yoga).

FYI  

In Martinique, Guadeloupe and La Réunion, the applicable VAT rate is 8.5%.

The following activities may be exempted from VAT if certain conditions are met:

  • School, university, technical, vocational, agricultural, distance education
  • Continuing vocational training provided by a public establishment or a business holding a certificate issued by the competent administrative authority
  • Individual lessons or courses given by individual contractors paid for directly by the students.

School and university education

Educational services exempt from VAT are:

  • Primary, secondary and higher education provided in a public institution or by a private institution comparable to a public institution of the first degree, of the second degree or higher. For example, a vocational school, a private educational institution, a private higher education institution or a private technical higher education institution
  • University education provided in a public institution or by a private institution which has concluded an agreement with a public institution of a scientific, cultural and professional nature or a private institution contributing to the tasks of the public higher education or research service
  • Agricultural education and vocational training
  • Distance education at primary, secondary, tertiary or technical level by a public or private distance learning institution.

The VAT exemption also applies to the supply of services or the supply of goods closely linked to educational provision. Examples of such services or deliveries are: provision of accommodation and food in-house or half-board, sale of school articles or supplies, sales of manufactured goods or services rendered by pupils in the course of the practical implementation of education.

Continuing vocational training

Continuing vocational training may be provided by a public body or a private body. The rules for obtaining a VAT exemption differ depending on the type of organization that delivers the training:

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Training provided by a public body

Continuing vocational training provided by public establishments is exempt from VAT.

The public institutions covered by the exemption are:

  • State central and local government
  • Region and local authority (department, municipality...)
  • State public institution
  • Local public institution
  • Multi-local authority institution
  • Urban Community
  • District
  • Public establishment of new cities
  • Departmental institution
  • Municipal union
  • Mixed union
  • Local authority institution
  • Office public d'HLM
  • Tourist office
  • Departmental Fire Fighting Service
  • Chamber of Commerce and Industry, Chamber of Trades, Chamber of Agriculture

The supply of services and the supply of goods closely related, which are carried out as part of continuing vocational training, are also exempt from VAT. Examples include the provision of accommodation or food for trainees, the provision of teaching materials, and the sale of objects made by trainees during their training.

Training provided by a private organization

The rules for obtaining a VAT exemption are different when the training is provided by a private company or an authorized trader of competence.

private company

Training provided by a private company may be exempt from VAT if it has a certificate.

A private company wishing to be exempt from VAT must make a application for certification using the form 3511-SD. The company must complete 4 copies and send 3 by registered letter with notice of receipt to the regional directorate for economy, labor and solidarity (DREETS) of the company's headquarters.

DREETS has a deadline of 3 months from receipt of the application to issue the certificate. In the absence of a reply within that period, the certificate shall be deemed to have been issued.

DREETS must send a copy of the certificate or the refusal to issue the certificate to the company and the public finance department whose company is dependent on. In case of refusal, the DREETS must give reasons for refusal.

The company is exempt from VAT upon receipt of the certificate.

FYI  

The supply of services and the supply of goods closely related, which are carried out as part of continuing vocational training, are also exempt from VAT. Examples include the provision of accommodation or food for trainees, the provision of teaching materials, and the sale of objects made by trainees during their training.

Authorized operator of competence

Training provided by a competent operator (OPCO) may be exempt from VAT if the operator has a certificate.

OPCO wishing to be exempt from VAT must make a application for certification using the form 3511-SD. It must be completed in 4 copies and the operator must send 3 copies by registered letter with notice of receipt to the authority which granted his approval.

The competent authority shall have a period of 3 months from receipt of the application to issue the certificate. In the absence of a reply within that period, the certificate shall be deemed to have been issued.

It must send a copy of the certificate or of the refusal to issue the certificate to the operator responsible and to the public finance department to which the operator is subject. In case of refusal, the DREETS must give reasons for refusal.

The company is exempt from VAT upon receipt of the certificate.

FYI  

The supply of services and the supply of goods closely related, which are carried out as part of continuing vocational training, are also exempt from VAT. Examples include the provision of accommodation or food for trainees, the provision of teaching materials, and the sale of objects made by trainees during their training.

Private lessons or courses

Courses and lessons relating to school, university, vocational, artistic or sporting education provided by a individual entrepreneur paid directly by his students are exempt from VAT.

When the teacher or trainer is exempt from VAT this means that it has more to collect VAT on behalf of the State. In other words, it does not charge VAT to his clients.

As he is exempt from VAT for his training or teaching activity, the teacher or trainer cannot deduct VAT from purchases which he has done for the purposes of his business. He loses his right to deduct.

If, on the other hand, the teacher or trainer charges for services or goods which are not covered by the VAT exemption, he or she will have to charge VAT to his or her customers for those sales. He will also be able to deduct VAT on purchases he has made for his professional activity.

Examples of supplies and goods that may be subject to VAT include:

  • Training benefits not related to vocational training
  • Sales of items manufactured by pupils in the course of their training which compete with the operations of traders subject to VAT.

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