TOEFL Test Costs surge in Europe as VAT Regulations Take Effect
Starting January 1, 2025, TOEFL test takers across the European Union are facing significantly higher fees due to new VAT regulations. The Educational Testing Service (ETS),the association behind the TOEFL iBT test,has confirmed that “VAT must now be applied to tests in the customer’s country of residence” across all 27 EU member states. This change is a direct result of updated EU Place of Supply (POS) rules, which now require VAT to be applied where the customer resides, rather than where the supplier is based.
The financial impact is substantial. Test takers in Germany will now pay an additional $50.35, while those in France and Sweden face extra charges of $54 and $80, respectively. Such as, the total cost of the TOEFL iBT test in France has risen to $324, compared to $269 for IELTS Academic and $270 for PTE academic. This price hike positions TOEFL as one of the most expensive English proficiency tests in europe, with competitors yet to pass on similar tax increases to their customers.
“This tax represents a new legal requirement, and we are working diligently to comply with the updated regulations while continuing to provide high-quality testing services,” an ETS spokesperson told The PIE News. The organization is also “actively working to ensure transparency by providing clear explanations of the new law to test takers in the affected markets.”
The updated VAT regulations are part of broader efforts by the OECD to combat base erosion and profit shifting (BEPS), a practise where multinational companies shift profits to low-tax jurisdictions, resulting in meaningful revenue losses for other countries. By aligning VAT submission with the customer’s location, the EU aims to ensure fairer taxation of virtual educational services.
Despite the increased costs,ETS remains committed to affordability. “We recognize the importance of affordability for our test takers and remain committed to delivering the highest value through our assessments and services,” the spokesperson added.
the financial impact of these changes comes as ETS reports a strong financial performance. According to its 2024 annual audit, the organization’s operating revenues reached $1.16 billion, marking a $139 million increase compared to 2023.
TOEFL Test Costs in Europe (2025)
| Country | Additional VAT | Total Cost |
|———|—————-|————|
| Germany | $50.35 | $324 |
| France | $54 | $324 |
| Sweden | $80 | $350 |
While the new VAT regulations are a legal necessity, they have sparked concerns among test takers about affordability. As ETS navigates these changes, it remains to be seen how competitors like IELTS and PTE Academic will respond to the evolving tax landscape in Europe.
For more information on the updated VAT rates across Europe, visit the Tax Foundation’s extensive guide.
Headline: “Navigating the New VAT Landscape: A Conversation with TOEFL Expert Dr.Laura Harrington”
Introduction:
In the wake of the EU’s updated VAT regulations, TOEFL test takers across Europe are grappling with substantially higher fees. We invited Dr. Laura Harrington, a language assessment specialist and long-time observer of the TOEFL ecosystem, to share her insights on this evolving landscape. Dr. Harrington has authored numerous papers on language proficiency testing and is currently a senior lecturer in Applied Linguistics at the University of manchester.
1. Impacts of the New VAT Regulations on TOEFL Test Takers
Senior Editor (SE): Dr. Harrington, with the new VAT regulations in effect, TOEFL test takers in Europe are now faced with substantially higher fees. Can you tell us about the financial implications for these students?
Dr. Laura Harrington (LH): Absolutely. The impact is quite significant. As a notable example, the total cost of the TOEFL iBT test in France has risen to $324, making it one of the moast expensive English proficiency tests in Europe. This surge can be quite challenging, especially for students who are already grappling with the high costs of education and living abroad.
2. TOEFL’s Response and Commitment to Affordability
SE: ETS has confirmed that these changes are a result of new EU VAT regulations. How has ETS responded to these changes and reassured test takers?
LH: ETS has been transparent about the changes, attributing them to new legal requirements. They’ve also reaffirmed their commitment to affordability. however, it’s a delicate balance. ETS must comply with these regulations while also ensuring the quality and accessibility of their tests.
3. Competitors in the English Proficiency Test Market
SE: How do these changes affect TOEFL’s position in the market compared to its competitors like IELTS and PTE?
LH: It’s engaging to note that IELTS and PTE Academic have not passed on similar tax increases to their customers yet. This leaves TOEFL at a competitive disadvantage in terms of pricing. However, TOEFL’s reputation and wide acceptance might help mitigate this issue. It’s a dynamic situation,and we’ll need to watch how these competitors respond in the coming months.
4. The EU’s Push to Combat Base Erosion and Profit Shifting
SE: The updated VAT regulations are part of broader efforts to combat base erosion and profit shifting. How do you think these regulations will contribute to this goal?
LH: By aligning VAT submission with the customer’s location, the EU aims to ensure fairer taxation of virtual educational services. However,the practical implications and the extent to which this will combat BEPS remain to be seen. It’s a complex issue with many moving parts.
5. Ensuring Accessibility and Affordability in Language Testing
SE: Given the increasing costs, what steps could be taken to maintain the accessibility and affordability of these tests?
LH: It’s crucial to have open dialogue between test providers, policymakers, and stakeholders. We also need to explore innovative approaches, possibly leveraging technology and alternative assessment methods to reduce costs without compromising quality. after all, these tests play a significant role in international education mobility.
SE: Thank you, Dr. Harrington, for sharing yoru insights.Your expertise has certainly provided valuable context to these recent changes.
LH: My pleasure. It’s an evolving landscape, and I’m eager to see how it unfolds.