In a recent decision the Supreme Tax Court held that the local knowledge test for aspiring taxi drivers is a VAT-free service. Although the tax office and the court of first instance had ruled otherwise for several reasons, the Supreme Tax Court referred to the overriding EU VAT Directive for its conclusion in the case of dispute.
The Supreme Tax Court has held that minicabs cannot claim the same reduced rate of VAT as taxis, except for ambulance services under a common contract with a health fund.
