Supplies of goods and services connected with education

By Tolley

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

  • Supplies of goods and services connected with education
  • What is closely related?

This guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:

  • Supplies of education
  • Local authority schools
  • Research and vocational training

HMRC Notice 701/30 

The supply, by an eligible body, of goods and services that are closely related to the supply of education can be exempt from VAT. If the goods and services are supplied by a non-eligible body they will be liable to VAT, unless the goods / services can be zero-rated or exempted from VAT under another VAT provision. Please see the Overview ― items liable to VAT at the zero-rate and Overview ― items that are exempt from VAT guidance notes.

What is closely related?

The supply of the goods / services must meet the following conditions:

  • the supply is made by or to the ‘eligible body’ making the principal exempt supply
  • the goods or services are for the direct use of the pupil, student or trainee (as the case may be) receiving the principal supply and they are necessary for delivering the education to that person
  • where the supply is to the eligible body making the principal supply, it is made by another eligible body

Please see the Supplies of education guidance note for a definition of what is an eligible body.

VATA 1994, Sch 9, Group 6, item 4; De Voil Indirect Tax Service V6.220 (subscription sensitive); International News Syndicate (1996) VTD 14425 (subscription sensitive); HMRC v The College of Estate Management [2005] STC 1597 (subscription sensitive); VATEDU50800; Supplies

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