English testing organisation, ETS, is now charging sales tax on its TOEFL iBT Test in the EU, according to The PIE News.
ETS are citing changes to EU regulations that mean VAT must be applied across all 27 EU member states. However, competing English test prices remain unchanged.
This change increases the price for TOEFL test takers by USD $50.35 in Germany, $54 in France and $80 in Sweden, to name a few. TOEFL now costs significantly more than other tests in Europe; for French test takers, TOEFL is now $324, compared to $269 for IELTS Academic and $270 for PTE Academic.
The new regulations came into effect on 1 January, as part of an effort by the OECD to address ‘base erosion and profit shifting’, where multinationals move profits to low tax locations.
ETS said they want to ‘ensure transparency’ around this change, and that they ‘recognise the importance of affordability for our test takers and remain committed to delivering the highest value through our assessments and services.’
According to The PIE, ETS’s 2024 annual audit saw their operating revenues up by $139 million compared to 2023.
