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An instructor has enquired about the taxation of their extracurricular self-defence classes. The Directorate General for Taxes (DGT) has ruled that the service is subject to the standard VAT rate and that the income may be classified as either professional activity income or employment income, depending on how the resources are organised.
This ruling clarifies the tax treatment for instructors of non-sporting martial arts, confirming the application of the standard VAT rate and the distinction between professional and employment income based on the nature of the activity's organisation.
The tax team reviews your specific situation.
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