Horse riding lessons as a leisure activity are subject to VAT

Oct 30, 2025

The Federal Finance Court (BFH) had to rule on the VAT treatment of services provided by a riding stable. In addition to the VAT assessment of riding lessons, the main issue was whether additional services such as accommodation and meals for riding students at the riding stable constituted a service that was integral to the riding lessons or not. Furthermore, it had to be clarified whether riding lessons could be considered leisure activities or school lessons or training or further education.

In the case in dispute, the BFH ruled in appeal proceedings that accommodation and meals for participants in riding lessons at a horse or riding centre were services to be assessed separately from riding lessons. The provision of meals and accommodation is generally subject to VAT unless it is a recognised social institution within the meaning of EU law. In the assessment periods of the dispute from 2007 to 2011, the law also required an institution of a social nature for tax exemption, which was not the case in the decided case.

The BFH also ruled that riding lessons typically constitute a leisure activity and are therefore not covered by the VAT exemption for teaching services.

An exception may apply if the riding lessons serve the purpose of vocational training, e.g. in preparation for obtaining competition licences or vocational examinations in equestrian sports. Since the plaintiff explained that one of the riding groups offered participants theoretical and practical lessons for obtaining the riding badge as a prerequisite for obtaining the competition licence, this course was to be exempt from tax. This had already been decided by the first-instance tax court. In this case, it is irrelevant how many participants ultimately take part in the examinations offered.

Source: BFH, judgment of 22 January 2025 – AZ XI R 9/22