In July 2017 the German Federal Tax Court lodged a request for a preliminary ruling on several questions regarding the VAT exemption for driving lessons. This case has the potential to fundamentally shape EU VAT law: while in Germany – like in most Member States of the EU – driving lessons are taxable, the requesting court tends to apply the tax exemption in Article 132(1)(i/j) of the VAT Directive. A corresponding decision by the European Court of Justice (ECJ) would therefore not only lead to ground-breaking tax consequences for suppliers of driving lessons, but for (almost) all kind of teaching services.
Intertax