Education and Vocational Training
Supplies of education and vocational training provided by an eligible body, such as a university, are exempt from VAT. Supplies that are considered 鈥渃losely related鈥 to the supply of education are also exempt from VAT.
Supplies of Education
HMRC consider the following to be a supply of education:
- Lectures
- Educational seminars
- Educational conferences and symposia
- Sporting facilities supplied to individuals - such as students and staff
- Online distance learning and associated materials where the student is subject to assessment by the University.
Excluded from this definition are admission to plays, concerts, sports meetings and exhibitions.
Supplies of Vocational Training
Vocational training covers training or re-training and work experience for:
- Paid employment
- Voluntary employment in areas beneficial to the community as a whole, education, health, safety, welfare, and charity work in general
Vocational training occurs where trainees attend courses, conferences, lectures, workshops or seminars and the purpose is to:
- Prepare for future employment
- Add to their knowledge to improve their performance in their current work
Vocational training does not occur where (through counselling, business advice or consultancy) the purpose is to improve the working practices and efficiency of an organisation as a whole.
Supplies ‘Closely Related’ to Education
Supplies ‘closely related’ to education are also treated as exempt from VAT. In general terms, 'closely related' refers only to goods and services that are:
- For the direct use of the pupil, student or trainee
- Necessary for delivering the education to that person.
The University does not charge VAT on closely related goods and services that it provides directly to the pupils, students and trainees of other schools, colleges or universities that are also ‘eligible bodies’.