Under the new rules on travel expenses applicable from assessment period 2014, an educational institution attended outside an employment or service relationship for the purpose of full-time studies or a comparable full-time educational measure also qualifies as a first place of work. According to a decision of the BFH dated 14 May 2020, this also applies where the educational institution is attended only in the context of a short-term educational measure.
Since then, trainees and students who attend an educational institution on a permanent basis have been treated for tax purposes in the same way as an employee who permanently attends a first place of work — in contrast to the previous legal position. In such cases, trainees and students can only deduct expenses for trips to the educational institution at the distance allowance rate and no longer at their actual amount as income-related expenses. The deduction of accommodation costs and additional meal expenses is likewise no longer available under business-trip principles; it is only available where a second household occasioned by the educational measure is maintained at the place of training.
The claimant, who was not in an employment relationship, attended a four-month full-time welding-technician course. In this connection, he claimed, among other things, costs for accommodation at the training location as well as additional meal expenses for three months as income-related expenses under business-trip principles. He denied being placed on equal footing with an employee on account of the short duration of the course.
The BFH did not follow this view, just as the tax office and tax court had not done so previously.
The duration of a full-time educational measure is irrelevant for classifying an educational institution as a first place of work under the newly worded § 9 (4) sentence 8 EStG. The statute does not require a minimum duration of the educational measure. It is necessary, but also sufficient, that the educational institution is attended on the occasion of the (typically time-limited) educational measure not merely occasionally, but with a certain degree of consistency — that is, on an ongoing and sustained basis. The trainee and student is thereby treated in the same way as an employee on a fixed-term contract.
Frequently asked questions
Frequently asked questions
Does an educational institution qualify as a first place of work even for short full-time courses?
Yes. According to the BFH ruling of 14 May 2020, the duration of a full-time educational program is irrelevant for classification as a first place of work. § 9 Abs. 4 Satz 8 EStG does not require a minimum duration. It is sufficient that the educational institution is attended continuously, and not merely occasionally, during the fixed-term program.
What are the tax consequences of classifying the educational institution as the primary place of work?
Trainees and students are treated like employees with a primary place of work. Travel expenses to the educational institution can therefore only be claimed as income-related expenses using the commuter allowance (Entfernungspauschale), not at actual cost. A deduction for accommodation and additional meal expenses under business travel rules is excluded.
When are accommodation and meal expenses still deductible during a full-time educational program?
A deduction is only possible if a second household is maintained at the location of the course or studies due to the educational program. The business-travel rules do not apply, as the educational institution qualifies as the primary place of activity (erste Tätigkeitsstätte).
Which statutory provision governs the treatment of educational institutions as a primary place of work?
The relevant provision is § 9 Abs. 4 Satz 8 EStG in the version of the reformed travel expense law applicable since the 2014 assessment period. Under this rule, an educational institution attended outside an employment relationship for the purpose of full-time studies or a full-time educational measure is deemed to be the primary place of work.
How are full-time apprentices and students classified for tax purposes?
They are treated as employees on a fixed-term contract with a primary place of work. As a result, the same restrictions apply to their travel, accommodation, and meal expenses as to employees permanently assigned to a primary place of work.