VAT benefit,
interesting?

Some organizations and individuals cannot reclaim VAT. In that case, an invoice without VAT is often more beneficial. The 21% VAT rate is then waived, but the participation fee will increase with 10%. The increase of the participation fee is necessary because YEARTH Academy cannot reclaim all VAT on the purchase costs with a VAT-exempt invoice.

For whom is VAT exemption attractive

• Individuals.
• Medical, social and cultural organizations.
• Banks and insurance companies.
• Government agencies.
• Educational organizations.

VAT exemption in brief

Can you or your employer reclaim VAT? Then you can opt for an invoice with VAT. Is it not possible to reclaim VAT? Then an invoice without VAT is usually cheaper due to the 10% increase of participation fee.

How does VAT exemption work?

Situation 1: you can reclaim VAT

For a participation fee of € 1,000, you pay 21% VAT. You can reclaim that amount (€ 210,-) from the tax authorities. The total investment therefore remains € 1,000. If you do opt for a VAT-free invoice, you pay € 1,100 because of the VAT-free surcharge. So for you it is more expensive.

Situation 2: you cannot reclaim VAT

For an invoice with VAT, you pay €1,210. You cannot reclaim the € 210 VAT. If you choose an invoice without VAT, you pay € 1,100. Because an invoice without VAT is € 110 cheaper, this is the most beneficial choice for you.

Why is there a 10% increase of participation fee?

As a training institute we are not allowed to reclaim the total amount of VAT on our purchase costs when we offer a training course VAT-free. These purchase costs include: training location, trainer costs and the digital learning environments.

With a VAT-exempt invoice, we bear this VAT ourselves. The 10% surcharge is necessary to compensate for these higher costs. This arrangement has been agreed upon with the tax authorities and applies to all institutions that are allowed to offer VAT-exempt services.

VAT and arrangement fees

If you take the training course on location, you will pay an extra fee for accommodation, coffee, tea and a full lunch. Two VAT rates apply for these costs:

• 21% for accommodation.
• 9% for food and drink.

VAT on food and beverages is never covered by the VAT exemption. The reduced rate of 9% is always charged and cannot be reclaimed. With a VAT-free invoice, this component remains taxed.

VAT and teaching materials

VAT on teaching materials is also never covered by VAT exemption. There is always 9% VAT charged on course materials. This is required by law, regardless of the option you choose. Thus, with a VAT-free invoice, this component remains taxed.

How do you choose your billing option?

During your enrollment, simply choose between:

• An invoice with 21% VAT.
• An invoice without VAT, including 10% subcharge.

Always choose the option that is most financially beneficial for you. In doubt? Then it’s best to find out if you or your organization can reclaim VAT.