Children's and youth camps were previously exempt from VAT. Last year, the Tax Board said that VAT must now be charged on camps.
The Prime Minister and the Minister of Education say that the problem will be resolved before summer. Minister Kallas says that the definition of camps will be changed. Camps must provide non-formal education for children, then they can receive VAT exemption.
The Ministry of Education is collaborating with the Tax Board to quickly amend the law. Camps must be registered and operate on a non-profit basis.
Camp organizers are confused. Some small camps do not need to register for tax because their turnover is low. Larger camps operate as businesses.
Approximately 30,000 children attend camps each year. Last year, there were fewer children because it was a song festival year. Camp prices are high, and adding VAT will make them even more expensive.
State support for camps is minimal. The support for a permanent camp is €6.20 per child, and for a project camp, it is €3.10. Benefits are available for larger families.
The Tax Board says that until then, the law must be followed. Camp services are subject to VAT if they are offered as economic activities. If the service is free or low-cost, then no VAT applies.
The Camp Organizers' Association believes that the current law allows for VAT exemption. Camps are part of the education system and provide learning activities.
The Tax Board advises camp organizers to contact them for guidance. The Minister of Education hopes that the legislative amendment will come into effect quickly.