Supplies of education

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Supplies of education
  • Overview of the main VAT treatment
  • Education providers
  • What is an eligible body?
  • VAT treatment of business supplies
  • What is education?
  • Distance learning
  • Private tuition
  • Examination services
  • School inspections
  • Supplies of goods and services closely related to eduction
  • Teaching English as a foreign language (EFL)
  • Fuel and power
  • Construction services

This guidance note provides an overview of the VAT treatment of education services.

VATA 1994, Sch 9, Part II, Group 6; 2006/112/EC , Articles 131, 132(i), (j), 133, 134; HMRC Notice 701/30 ; VAT and Education ― 14 PVN 2, 9 (subscription sensitive); VATEDU05000
Overview of the main VAT treatment

The following table provides an overview of the main VAT treatment of different supplies of education:

Type of supplyVAT treatment
Education provided free of charge by a local authority maintained school, technology college, sixth form college or academies, etcThe education services are outside the scope of UK VAT as they are not provided for business purposes. Any closely related supplies of other goods / services are also outside the scope of VAT. See the Supplies of goods and services closely related to education guidance note.
The supply of school, higher or further education in exchange for a feeThe supply by an eligible body will be exempt from VAT. The organisation can also exempt from VAT any supplies of goods and services closely related to education.
If the organisation supplying the education services is not an eligible body, the supply will be liable to VAT at the standard rate

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