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A company providing school canteen and childcare supervision services asks which VAT treatment applies to them. The DGT determines that the supply of food is taxed at the reduced rate of 10% and the care and supervision services in the educational center are exempt.
Question raised: Taxation of the aforementioned operations.
School canteen services (preparation and supply of menus) are subject to the reduced rate of 10%. Care, support, and supervision services for children in educational centers during lunch, recess, or after-school hours are subject to VAT but exempt. If a single price is invoiced, the taxable base must be apportioned proportionally to the market value of each service.
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