For one of our clients, we obtained a precedent-setting tax interpretation confirming the right to apply the VAT exemption to educational services of an entity not covered by the provisions of the Education Law, which provided so-called home teaching services.

We were commissioned to analyse the right to apply the VAT exemption in the case of an entity providing educational services in the presence of pupils who had reached the age of four, in respect of whom the head of the relevant public or non-public kindergarten or primary school had issued a decision authorising the fulfilment of annual preschool preparation, schooling or compulsory education outside school. At the same time, our client was not an entity oerating under the provisions of the Education Law, i.e. it was not an entity covered by the education system.

After analysing the legislation, we concluded that the client should be entitled to apply the VAT exemption concerning child and youth care services and the supply of goods and the provision of services closely related to these services, performed in the forms and under the rules set out in the provisions on social assistance, in the provisions on the educational system and in the provisions of the Education Law.

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Given the low degree of clarity of this provision, which, like other VAT exemptions in the VAT Act relating to educational services, raises doubts from the point of view of compliance with EU regulations, and the lack of rulings issued in similar factual situations, we recommended requesting an individual tax interpretation

Thanks to a skilful presentation of the relationship of the client's activity with educational regulations and creative use of the Tribunal of Justice case law on VAT exemption for educational services, we obtained for the client a favourable tax interpretation confirming its right to apply VAT exemption to its educational services. This exemption is objective in nature and is therefore independent of the amount of turnover (sales) achieved by the client

Thanks to our actions, the client was able to safely start applying the VAT exemption and thus significantly reduce the taxation of its business activities.