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Seconded teachers
A college seconded some of its teachers to other educational establishments. The college continued to pay the teachers but was reimbursed by the other establishments. The latter also paid the teachers' statutory liability insurance. The issue concerned whether the college's claimants were exempt from VAT under article 13(A)(1), i.e. whether the services were education or closely related thereto.
The European Court of Justice said that there was no definition of the various forms of education referred to in the article. The transfer of skill and knowledge between a student and teacher was an important element of educational activity, but this was by itself insufficient. The activity should consist of a number of elements, including an organisational framework. The claimant's activity of transferring teachers to other establishments only facilitated the provision of education.
A supply was closely related to education when the services were ancillary to the principal service of education. It had to be essential, to the extent that without the transferred teachers the supply would not be as good as it would have been were they not transferred.
The court decided that making available teachers to another establishment was not covered by the article and the exemption did not apply.
Stichting Regionaal Opleidingen Centrum Noord-Kennemerland/West-Friesland (Horizon College) v Staatsecretaris van Financiën (Case C-434/05), European Court of Justice, 14 June 2007
