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A company sought clarification on whether its childcare, education, and supervision services provided during non-teaching hours to support work-life balance were exempt from VAT. The DGT ruled that the exemption applies to services provided within the school premises, whereas other services, such as excursions or transport, are subject to the reduced VAT rate.
This ruling clarifies the distinction between exempt childcare services provided on-site and other related services that qualify for the reduced VAT rate, affecting how educational providers structure their billing for extracurricular activities.
The tax team reviews your specific situation.
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