Company Day Care Centers to be Newly VAT Exempt

Employers organizing children groups or day care centers not recorded in the school registry to children younger than 4 years of age were obligated to pay the VAT on the income earned by these organizations. This status quo is to change after 1 July as the whole scheme is going to change.

If a non-profit organization running a children group or providing day care to children younger than 4 years of age is set up, its revenues earned are to be VAT exempt in accordance with VAT Act, Section 57/1/h.