Over the last few months we have seen a significant number of VAT issues arising in relation to supplies made in the education sector.
The recent case of the Turkish belly dancer (whose dance classes were found not to qualify for VAT exemption) has received significant press coverage. However, there have been numerous other developments involving issues as diverse as:
– The treatment of student accommodation,
– The VAT liability of tuition packages which include the provision of printed matter,
– Whether education is a business or non-business activity,
– Whether or not an organisation is an “eligible body”, and,
– Changes to the Framework Agreement covering VAT recovery methods for Higher Education Institutions.
All of this highlights that there are many issues in relation to this sector where the VAT position is far from settled.
We work with a range of organisations which are involved in the education sector including Academy Schools, vocational training providers and private sector developers of student accommodation amongst others.
If you are involved in this sector, we strongly recommend reviewing your VAT position on a regular basis to ensure that you keep up to date with these and any other changes.