Ask a tax advisor on the topic of Sales tax / Turnover tax

Is the fee for piano lessons at home exempt from value added tax?

February 6, 2021 | 35,00 EUR | answered by Steuerberater Knut Christiansen

For years, I have been giving piano lessons to young people at home on an hourly basis. I have correctly reported the income on my income tax return as exempt from sales tax. The income from piano teaching amounted to approximately €5,000 annually. Now, the tax office is demanding sales tax on the income from piano teaching retroactively for 2018 and 2017. My objection to the sales tax assessment stating "The income from piano teaching is exempt from sales tax. Therefore, no UR attachment is required and has not been attached. I refer to Art. 132(1)(j) of the VAT Directive 2006/112/EC." has been rejected. What legal remedies can I use against this unjust decision? Are there clear tax regulations regarding this issue?

Steuerberater Knut Christiansen

Good evening,

before delving into the examination of VAT exemption, why not refer to Paragraph 19 of the German VAT Act (small business regulation). You would not need to pay/indicate VAT if your annual income does not exceed €17,500 (now €22,000).

Best regards,

Knut Christiansen
Tax advisor