The Central Register of Short Vocational Education consists of a Register of Institutions and a Register of Teachers. Educational institutions are registered in the Register of Institutions that comply with the Quality Code for Training Institutions for Short Vocational Education. The Register of Teachers contains independently working teachers who comply with the Quality Code for Teachers.
In principle, professional training courses are exempt from the levy of turnover tax (VAT):
- If they are legally recognized in the context of WEB or WHW. These official (V) MBO / HBO / WO courses (provided by ROCs, AOCs, vocational schools, colleges and universities) are in that case accredited by the Inspectorate of Education, NVAO, AACSB or EFMD (EQUIS / EPAS));
- If they are funded by the government and are listed in: the appendix to the Higher Education and Scientific Research Act or in the Education and Vocational Education Act;
If they are offered by an institution registered in the CRKBO Register of Institutions, or by a self-employed teacher who is registered in the CRKBO Register of Teachers.
The VAT exemption only applies to vocational education. Institutions or teachers who additionally offer general education, advice, leisure courses or other services are required to pay VAT on the revenues from these activities. The Tax Inspector determines whether a course or service falls under vocational education. This means that in the financial administration a clear distinction must be made between costs and revenues related to vocational education and the costs and revenues related to other activities. Consult your bookkeeper / accountant!
Advantages and disadvantages of a VAT exemption
The advantage of a VAT exemption is that you can charge your customers a lower price. This is especially the case if you provide vocational education to institutions or persons who cannot deduct VAT. This may be because they are exempt from VAT (for example healthcare institutions), or because they are end customers (private persons). The disadvantage of a VAT exemption is that you cannot deduct (“get back”) VAT yourself on business-oriented investments or purchases for your activities as a vocational education provider or teacher. Ultimately, it is your business decision whether you opt for VAT exemption, if you qualify.
