V16.1052 VAT rules for higher education providers
Information Sheet 8/18, November 2018
Purpose of this information sheet
There are changes to the way in which higher education providers in England are funded with effect from 1 August 2019. The VAT changes are explained in Revenue and Customs Brief 11 (2018): VAT – rule changes for higher education (RCB/11/18, Division V16.3). This information sheet explains the impact of the changes.
General description of the change
At Budget 2018, the government announced that, subject to Parliament approval, it will update the VAT law to make sure there is continuity of VAT treatment for English higher education providers under the Higher Education and Research Act 2017.
The change in legislation applies to English higher education providers who register with the Office for Students in the Approved (fee cap) category. English higher education providers seeking grant funding from the 2019 to 2020 academic year must apply for registration and be registered with the Office for Students in the 'Approved (fee cap)' category prescribed in regulations made under section 39 of Higher Education and Research Act 2017 in order to be eligible. These providers will be listed on the register of higher education providers, which will be maintained by the Office for Students.
Certain higher education institutions