ETS has confirmed that as a result of adjustments in European Union laws, “VAT should now be utilized to checks within the buyer’s nation of residence” throughout all 27 EU member states.
The up to date laws will imply increased payments for TOEFL take a look at takers, with these taking the take a look at in Germany paying a further USD $50.35, these in France a further $54 and people in Sweden a further $80, in response to the take a look at reserving web site.
The rise implies that TOEFL now prices considerably greater than rivals in Europe that don’t seem to have handed on the elevated tax to check takers.
In France, as an illustration, take a look at takers now pay $324 for TOEFL, in comparison with $269 and $270 for IELTS Tutorial and PTE Tutorial respectively, ELT knowledgeable Michael Goodine knowledgeable The PIE.
“This tax represents a brand new authorized requirement, and we’re working diligently to adjust to the up to date laws whereas persevering with to supply high-quality testing companies,” a spokesperson for ETS informed The PIE Information.
The brand new laws surrounding VAT took impact on January 1, 2025, as a result of adjustments within the EU’s Place of Provide (POS) guidelines regarding sure instructional companies that are supplied just about. Pre-January 2025, these companies had a POS the place the provider belonged, however the brand new guidelines put the POS the place the client resides.
The up to date laws are a part of the OECD’s ongoing efforts to handle ‘base erosion and revenue shifting’, the place multinationals shift earnings to low tax areas inflicting different nations to lose revenues.
Although there was no official announcement from ETS in regards to the enhance, the testing firm stated it was “actively working to make sure transparency by offering clear explanations of the brand new legislation to check takers within the affected markets”.
“We recognise the significance of affordability for our take a look at takers and stay dedicated to delivering the best worth via our assessments and companies,” it stated.
In the meantime, ETS’s working revenues totalled 1.16 billion final 12 months, up $139 million in comparison with 2023, in response to its lately launched 2024 annual audit.
