RCB/9/10 Revised policy with regard to the supply of education by a university subsidiary trading company
Revenue & Customs Brief, Issue 9. 11 March 2010
Following developments in VAT case law and in methods by which education is delivered by universities, we have reviewed our policy on the treatment of supplies of education delivered by companies that are owned or controlled by a university. This review has identified a need for a change in policy, and as a result the VAT liability of supplies of education will change in certain circumstances. The new policy applies to supplies made on or after the date of this Brief subject to transitional arrangements (see below).
Who should read this?
This Brief should be read by any university owned company that delivers education and any university owning such a company.
Supplies of education are exempt from VAT when provided by a UK university and any college, institution, school or hall of a university. (Note (1)(b), Group 6, Sch 9, VATA 1994). Following the review, we have concluded that, in many cases where a university