The intent of the transition allowance is that the employee is financially supported in “transitioning” into a new job. Therefore, costs of outplacement, career counseling and coaching (but also education) can be deducted from the transition allowance.
This means such costs end up being tax free.
If you would like to receive professional guidance in finding a new job, there are (financially speaking) two options:
The employer pays the invoice and deducts the costs of the counseling process (often excluding VAT) from the severance payment.
The employee therefore pays no income tax on these costs.
The employee pays the invoice for the counseling process themselves. And in principle deducts these costs (including VAT) from the income tax. Ca legal threshold of 250 euros (from 2013 onward).
Usually it is more favorable for an employee to ask the employer to deduct the costs of an outplacement or career counseling process from the transition allowance. This is due to the legal threshold and because the employee themselves have to pay the VAT, it means the costs of a career counseling program are higher.
* With the exception of organizations that have their own agreements concerning severance pay (for example in a social plan).