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The DGT states that education and child care may be exempt if specific conditions are met, or subject to a 10% VAT rate if considered social assistance by social entities.
Question posed: Liability, exemption, and applicable tax rate for Value Added Tax purposes.
Childcare and custody are exempt if provided by authorized entities. Courses are exempt if the subjects are included in official curricula; otherwise, they are taxed at 21%. Camps and extracurricular activities may be taxed at the reduced rate of 10% if they are considered social assistance services (child and youth protection) provided by entities of a social nature. If these requirements are not met, the general rate of 21% shall apply.
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