© 2025 by Michael Firth KC, Gray's Inn Tax Chambers
Contact: michael.firth@taxbar.com
H9. Education exemptions
ELIGIBLE BODIES
(a) Schools
"(a) a school within the meaning of the Education Act 1996], the Education (Scotland) Act 1980, the Education and Libraries (Northern Ireland) Order 1986 or the Education Reform (Northern Ireland) Order 1989, which is—
(i) provisionally or finally registered or deemed to be registered as a school within the meaning of the aforesaid legislation in a register of independent schools; or
(ii) a school in respect of which of which grants are made by the Secretary of State to the proprietor or managers; or
(iii) a community, foundation or voluntary school within the meaning of the school Standards and Framework Act 1998, a special school within the meaning of section 337 of the Education Act 1996 or a maintained school within the meaning of the Education and Libraries (Northern Ireland) Order 1986; or
(iv)a public school within the meaning of section 135(1) of the Education (Scotland) Act 1980; or
...
(vi) a self-governing school within the meaning of section 1(3) of the Self-Governing Schools (Scotland) Act 1989; or
...
(viii)a grant-maintained integrated school within the meaning of Article 65 of the Education Reform (Northern Ireland) Order 1989;" (VATA Sch 9, Group 6, Note 1(a))
(b) Universities
"(b) a United Kingdom university, and any college, institution, school or hall of such a university;" (VATA Sch 9, Group 6, Note 1(b))
- College of a university requires a sufficient degree of integration
"[36] So far as material for present purposes, these authorities establish the following propositions:
(1) The way in which the United Kingdom has implemented Article 132 of the Principal VAT Directive in Group 6 and Note (1)(b) assumes that any United Kingdom university making supplies within Group 6 satisfies the requirements of Article 132(1)(i) and that a college or institution of such a university has objects similar to such a university.
(2) In the United Kingdom, the structure of universities is diverse.
(3) The phrase "any college, institution, school or hall" in Note (1)(b) is a composite phrase.
(4) The diversity of the structures of universities means that there must be a flexibility of approach in relation to the interpretation and application of the composite phrase. The phrase should be applied in a purposive way to achieve the object of the exemption.
(5) For a body to qualify as an eligible body as a college or institution of a university under Note (1)(b), it must be shown that the body shares the university's objects or at least the object of providing university education. The question whether the body itself supplies education may not matter as it is only a body which is an eligible body and which supplies education which will be able to take advantage of the exemption.
(6) The college or institution must be "of" the university and this requires that there be some degree of integration of the college or institution into the university. Whether the link between the college or institution and the university is sufficient in any particular case will depend upon an assessment of all the facts. In general, it will be necessary to consider the constitution of the university and the role played by the college. The link must be sufficiently substantial to allow one to say that the college or institution is "of" the university.
(7) Although a body can carry on other activities not related to the university, and still be sufficiently integrated into the university, a substantial portion of the body's activities must be connected with the university.
(8) When assessing whether the body is "of" the university, it will usually be helpful to consider the nature of the link between the body and the university, the importance of the link to the university and to the body and the extent to which the link is openly recognised.
(9) If, on the facts of a particular case, it is found that the fundamental purpose of the body is to provide university education, a tribunal is entitled to be influenced by such a finding in favour of holding that the body is sufficiently integrated into a particular university.
(10) The above approach to the interpretation of the exemption does not infringe the legal principles of equality and fiscal neutrality." (Finance & Business Training Limited v. HMRC [2013] UKUT 594 (TCC), Morgan J)
(c) Further and higher education bodies
" (c)an institution—
(i)falling within section 91(3)(a), (b) or (c) or section 91(5)(za), (b) or (c) of the M9Further and Higher Education Act 1992; or
(ii)which is a designated institution as defined in section 44(2) of the Further and Higher Education (Scotland) Act 1992; or
(iii)managed by a board of management as defined in section 36(1) of the Further and Higher Education (Scotland) Act 1992; or
(iv)to which grants are paid by the Department of Education for Northern Ireland under Article 66(2) of the Education and Libraries (Northern Ireland) Order 1986; or
(v)managed by a governing body established under the Further Education (Northern Ireland) Order 1997;" (VATA Sch 9, Group 6, Note 1(c))
(d) Public bodies
"(d) a public body of a description in Note (5) to Group 7 below;" (VATA Sch 9, Group 6, Note 1(d))
(e) Not for profit bodies
"(e) a body which—
(i) is precluded from distributing and does not distribute any profit it makes; and
(ii) applies any profits made from supplies of a description within this Group to the continuance or improvement of such supplies;" (VATA Sch 9, Group 6, Note 1(e))
(f) English as foreign language entities
"(f)a body not falling within paragraphs (a) to (e) above which provides the teaching of English as a foreign language." (VATA Sch 9, Group 6, Note 1(f))
- Only to the extent that supplies are of teach English as a foreign language
"(2) A supply by a body, which is an eligible body only by virtue of falling within Note 1(f), shall not fall within this Group insofar as it consists of the provision of anything other than the teaching of English as a foreign language." (VATA Sch 9, Group 6, Note 2)
EU law: bodies governed by public law with education aim/other organisations recognised as having similar objects
"1. Member States shall exempt the following transactions:
[...]
(i) the provision of children's or young people's education, school or university education, vocational training or retraining, including the supply of services and of goods closely related thereto, by bodies governed by public law having such as their aim or by other organisations recognised by the Member State concerned as having similar objects;" (Article 132(1)(i))
See further H2. Exemptions subject to a supplier condition.
(1) EDUCATION BY ELIGIBLE BODY
General
- Exemption for education or vocational training by eligible body
"The provision by an eligible body of—
(a) education; or
...
(c) vocational training." (VATA Sch 9, Group 6, Item 1)
- EU exemption
"1. Member States shall exempt the following transactions:
[...]
(i) the provision of children's or young people's education, school or university education, vocational training or retraining, including the supply of services and of goods closely related thereto, by bodies governed by public law having such as their aim or by other organisations recognised by the Member State concerned as having similar objects;" (Article 132(1)(i))
Optional additional conditions
"Member States may make the granting to bodies other than those governed by public law of each exemption provided for in points (b), (g), (h), (i), (l), (m) and (n) of Article 132(1) subject in each individual case to one or more of the following conditions:
(a) the bodies in question must not systematically aim to make a profit, and any surpluses nevertheless arising must not be distributed, but must be assigned to the continuance or improvement of the services supplied;
(b) those bodies must be managed and administered on an essentially voluntary basis by persons who have no direct or indirect interest, either themselves or through intermediaries, in the results of the activities concerned;
(c) those bodies must charge prices which are approved by the public authorities or which do not exceed such approved prices or, in respect of those services not subject to approval, prices lower than those charged for similar services by commercial enterprises subject to VAT;
(d) the exemptions must not be likely to cause distortion of competition to the disadvantage of commercial enterprises subject to VAT." (Article 133)
Limit for exemption for closely related supplies
"The supply of goods or services shall not be granted exemption, as provided for in points (b), (g), (h), (i), (l), (m) and (n) of Article 132(1), in the following cases:
(a) where the supply is not essential to the transactions exempted;
(b) where the basic purpose of the supply is to obtain additional income for the body in question through transactions which are in direct competition with those of commercial enterprises subject to VAT." (Article 134)
"[32] Furthermore, contrary to what is claimed by the Commission, Article 134 of the VAT Directive in no way excludes the possibility of applying the exemption provided for in point (i) of Article 132(1) of that directive to private organisations that provide educational services for commercial purposes. As the Advocate General pointed out in point 31 of her Opinion, Article 134 of the VAT Directive is applicable only to transactions closely related to the exempted educational services within the meaning of point (i) of Article 132(1) thereof, that is to say, not to transactions in the core area of those services (see, to that effect, Joined Cases C‑394/04 and C‑395/04 Ygeia [2005] ECR I‑10373, paragraph 26; and Case C‑415/04 Stichting Kinderopvang Enschede [2006] ECR I‑1385, paragraphs 22 and 25)." (MDDP C-319/12)
- Purpose of exemption: facilitate access to eduction by avoiding increased cost
"[26] Concerning the purpose of the exemption provided for in point (i) of Article 132(1) of the VAT Directive, it is apparent from that provision that that exemption, by treating the supply of educational services more favourably for the purposes of VAT, is intended to facilitate access to those services by avoiding the increased costs that would result if the services were subject to VAT (see, to that effect, Case C‑287/00 Commission v Germany [2002] ECR I‑5811, paragraph 47)." (MDDP C-319/12)
Education
- Narrow interpretation not required
"[36] Although the terms used to specify the exemption envisaged under Article 13A(1)(j) of the Sixth Directive are, admittedly, to be interpreted strictly, a particularly narrow interpretation of ‘school or university education’ would risk creating divergences in the application of the VAT system from one Member State to another, as the Member States’ respective education systems are organised according to different rules. Such divergences would be incompatible with the requirements of the case-law referred to in paragraph 25 of this judgment (see Haderer, paragraph 24)." (Eulitz C-473/08)
- Transfer of knowledge and skills between teacher and students is important element
"[24] The Court has, however, first, taken the view that the transfer of knowledge and skills between a teacher and students is a particularly important element of educational activity (judgments of 14 June 2007, Horizon College, C‑434/05, EU:C:2007:343, paragraph 18, and of 14 March 2019, A & G Fahrschul-Akademie, C‑449/17, EU:C:2019:202, paragraph 21)." (Dubrovin C-373/19 and A & G Fahrschul-Akademie C-449/17, §21)
- Also requires organisational framework and teacher-student relationship
"[30] As regards in particular the term ‘education’, it should be borne in mind that the Court has held, in essence, that although the transfer of knowledge and skills between a teacher and students is a particularly important element of educational activity referred to in Article 13A(1)(i) of the Sixth Directive, it remains the case that that activity consists of a combination of elements which include, along with those relating to the teacher-student relationship, also those which make up the organisational framework of the establishment concerned (see, to that effect, Horizon College, paragraphs 18 to 20)." (Eulitz C-473/08)
- Organisational element may exist through remote courses
"[105] I do not consider that the Horizon College case is authority for such a restrictive approach to Article 13A(1)(i). The ECJ was, on the facts of that case, dealing with conventional schools. Neither the Court nor the Advocate General addressed the provision of distance learning. It is possible to deduce from the reasoning and decision in the Horizon College case that, as the UT observed at paragraph 60 of its decision, the mere provision of course material with an educational content for use by other educational institutions would not be sufficient even in the context of the supply of distance learning. As the evidence plainly shows, however, the BBC's educational broadcasting during the relevant period was not so restricted. Nor was it restricted to the broadcasting of a number of single, stand-alone, programmes. The BBC was producing complete series or courses for the education of children and young people and for vocational training or retraining." (HMRC v. Open University [2016] EWCA Civ 114, Etherton, Lewison, Ryder LJJ)
- Contrast between school/university education and tuition covering those subjects
"[32] However, as stated in paragraph 21 of this judgment, the exemption specified in the latter provision is not, however, specifically directed at ‘school or university education’ but, in language versions other than the German language version, at a related concept expressed in English as ‘tuition … covering’ such education. The word ‘tuition’ in this context must be understood as encompassing, essentially, the transfer of knowledge and skills between a teacher and pupils or students." (Eulitz C-473/08)
- Supply of a teacher to another educational establishment is not a supply of education
"[21] However, as stated in paragraph 7 of this judgment, according to the terms of the placement contracts at issue in the main proceedings, it was for the host establishment to define the duties of the teacher concerned, having regard to the duration of the placement and the role assigned to that teacher at Horizon College. In addition, the host establishment was required to insure the teacher for the period of his or her placement.
[22] Accordingly, the making available of a teacher to the host establishment in such circumstances cannot be regarded, of itself, as an activity capable of being covered by the term ‘education’, within the meaning of Article 13A(1)(i) of the Sixth Directive. As the Greek and Netherlands Governments and the Commission essentially contend, the contract concluded between Horizon College, the host establishment and the teacher concerned aims, at most, simply to facilitate the provision of education by the host establishment." (Horizon College C-434/05)
School and university education (Article 132)
- Integrated system covering diverse set of subjects
"[26] Thus, the concept of ‘school or university education’ within the meaning of Article 132(1)(i) and (j) of Directive 2006/112 covers activities which are characterised both by their specific nature and by reason of the framework in which they are carried out (see, to that effect, judgments of 14 June 2007, Horizon College, C‑434/05, EU:C:2007:343, paragraph 20, and of 14 March 2019, A & G Fahrschul-Akademie, C‑449/17, EU:C:2019:202, paragraph 24).
[27] It follows that, by that concept, the EU legislature intended to refer to a certain type of education system which is common to all the Member States, irrespective of the characteristics particular to each national system (judgment of 14 March 2019, A & G Fahrschul-Akademie, C‑449/17, EU:C:2019:202, paragraph 25).
[28] Consequently, the concept of ‘school or university education’ for the purposes of the VAT system refers generally to an integrated system for the transfer of knowledge and skills covering a wide and diversified set of subjects, and to the furthering and development of that knowledge and those skills by the pupils and students in the course of their progress and their specialisation in the various constituent stages of that system (judgment of 14 March 2019, A & G Fahrschul-Akademie, C‑449/17, EU:C:2019:202, paragraph 26)." (Dubrovin C-373/19 and A & G Fahrschul-Akademie C-449/17 §§24 - 26)
- Not limited to education leading to qualification
"[24] Second, the Court has stated that the concept of ‘school or university education’, within the meaning of Directive 2006/112, is not limited solely to education which leads to examinations for the purpose of obtaining qualifications or which provides training for the purpose of carrying out a professional or trade activity..." (Dubrovin C-373/19)
- Other activities to develop knowledge and skills that are not purely recreational
"[25] Second, the Court has stated that the concept of ‘school or university education’, within the meaning of Directive 2006/112, is not limited solely to education which leads to examinations for the purpose of obtaining qualifications or which provides training for the purpose of carrying out a professional or trade activity, but includes other activities which are taught in schools or universities in order to develop pupils’ or students’ knowledge and skills, provided that those activities are not purely recreational (judgments of 28 January 2010, Eulitz, C‑473/08, EU:C:2010:47, paragraph 29 and the case-law cited, and of 14 March 2019, A & G Fahrschul-Akademie, C‑449/17, EU:C:2019:202, paragraphs 22 and 23)." (Dubrovin C-373/19)
- No distinction based on whether pupils already hold qualification
"[35] As suggested by the national court itself, no distinction should be made for VAT purposes between education provided to pupils or students who are receiving initial school or university training and that provided to those already holding school or university qualifications who, on the basis of those qualifications, continue their professional training. The same applies to tuition covering that education." (Eulitz C-473/08)
- Activities actually provided by a school or university likely to be covered
"[23] In that regard, it must be noted, as the Advocate General observes in point 35 of his Opinion, that, in accordance with that settled case-law, activities which are not purely recreational are likely to be covered by the concept of ‘school or university education’ as long as the tuition is provided in schools or universities." (A & G Fahrschul-Akademie C-449/17)
- Swimming lessons not included (no wide and diversified transfer of knowledge)
"[31] However, it should be pointed out that, while the swimming tuition provided by a swimming school, such as that at issue in the main proceedings, is of undoubted importance and in the general interest, it nevertheless constitutes specialised tuition provided occasionally, which does not amount, in itself, to the transfer of knowledge and skills covering a wide and diversified set of subjects or to their furthering and development which is characteristic of school or university education (see, by analogy, judgment of 14 March 2019, A & G Fahrschul-Akademie, C‑449/17, EU:C:2019:202, paragraph 29, and order of 7 October 2019, Finanzamt Hamburg-Barmbek-Uhlenhorst, C‑47/19, not published, EU:C:2019:840, paragraph 33)." (Dubrovin C-373/19)
- Driving lessons not included (no wide and diversified transfer of knowledge)
"[29] It should be noted, however, that, even if it covers a range of practical and theoretical knowledge, driving tuition provided in a driving school, such as that at issue in the main proceedings, nevertheless remains specialised tuition which does not amount, in itself, to the transfer of knowledge and skills covering a wide and diversified set of subjects or to their furthering and development which is characteristic of school or university education." (A & G Fahrschul-Akademie C-449/17)
- Sailing and surfing tuition not included
"[32] In the present case, it appears from the order for reference that the applicant in the main proceedings provided, in part, surfing and sailing lessons, which could count towards the grade, to classes in schools, to sports groups in schools or as part of university courses, particularly on the occasion of class trips.
[33] However, it should be noted that the teaching of surfing and sailing in schools, such as those at issue in the main proceedings, while it involves the transmission of various practical and theoretical knowledge, nevertheless constitutes specialized and occasional teaching which does not, in itself, amount to the transmission of knowledge and skills covering a broad and diverse range of subjects, as well as their deepening and development, which is characteristic of school or university teaching (see, by analogy, judgment of 14 March 2019, A & G Fahrschul-Akademie, C-449/17, EU:C:2019:202, paragraph 29)." (HA C-47/19)
- Fire prevention training at educational establishment can be included
"[35] As suggested by the national court itself, no distinction should be made for VAT purposes between education provided to pupils or students who are receiving initial school or university training and that provided to those already holding school or university qualifications who, on the basis of those qualifications, continue their professional training. The same applies to tuition covering that education." (Eulitz C-473/08)
- Query whether pottery and ceramics courses included
"[23] Although the referring court did not express any doubt as to whether the activities at issue in the main proceedings may be covered by those terms, the Finanzamt nevertheless submits that, taking into account the strict interpretation required in respect of exemptions from VAT, the ceramics and pottery courses provided by Mr Haderer do not involve the same demands as those of courses normally given in schools or universities. On the contrary, such courses are intended purely for leisure purposes...
...
[27] It is for the referring court, if necessary, to verify afresh in the light of those factors whether the activities at issue in the main proceedings cover ‘school or university education’ within the meaning of Article 13A(1)(j) of the Sixth Directive. " (Haderer C-445/05)
Vocational training
- Training/experience for trade, profession, employment, voluntary work
"(3) “Vocational training” means - training, re-training or the provision of work experience for—
(a)any trade, profession or employment; or
(b)any voluntary work connected with—
(i)education, health, safety, or welfare; or
(ii)the carrying out of activities of a charitable nature." (VATA Sch 9, Group 6, Note 3)
(2) PRIVATE TUITION
Private tuition by independent individual in subject taught in school/university
"The supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer." (VATA Sch 9, Group 6, Item 2)
"(j) tuition given privately by teachers and covering school or university education;" (Article 132)
- School or university education
"[31] The same term should be understood in a similar manner in the context of Article 13A(1)(j) of the Sixth Directive." (Eulitz C-473/08)
See above.
Tuition
- Tuition can cover teaching in an educational establishment by an individual
"[38] Therefore, the answer to the first question referred must be that Article 13A(1)(j) of the Sixth Directive must be interpreted as meaning that teaching work which a graduate engineer performs at an education institute established as a private-law association for participants in advanced training courses – culminating in an examination – who already have at least a university or higher technical college qualification as an architect or an engineer or who have an equivalent education can constitute ‘tuition … covering school or university education’ within the meaning of that provision." (Eulitz C-473/08)
- Tuition covers the transfer of knowledge and skills between teacher and pupil (organisational elements less important)
"[32] However, as stated in paragraph 21 of this judgment, the exemption specified in the latter provision is not, however, specifically directed at ‘school or university education’ but, in language versions other than the German language version, at a related concept expressed in English as ‘tuition … covering’ such education. The word ‘tuition’ in this context must be understood as encompassing, essentially, the transfer of knowledge and skills between a teacher and pupils or students.
[33] It follows that although teaching work performed in an education institute is not necessarily, in the absence of any other evidence, ‘school or university education’ within the meaning of Article 13A(1)(j) of the Sixth Directive, such work could, however, fall under ‘tuition given privately by teachers and covering school or university education’ within the meaning of that provision, in so far as that work includes, essentially, the transfer of knowledge and skills between a teacher and pupils or students in the context of training for the purpose of carrying out a professional or trade activity." (Eulitz C-473/08)
- Examination services included within tuition only insofar as they are carried out in the context of knowledge transfer
"[32] From that perspective, as regards the activities of Mr Eulitz other than teaching in the strict sense, such as that of examiner, as well as the other activities referred to in paragraph 11 of the present judgment, it should be noted that such activities may be considered to be covered by the term ‘tuition’, within the meaning of Article 13A(1)(j) of the Sixth Directive, only in so far as they can be regarded as being carried out, essentially, in the context of the transfer of knowledge and skills between a teacher and pupils or students. It is for the referring court, if need be, to ascertain whether that is the case as regards some of the activities at issue in the main proceedings." (Eulitz C-473/08)
Privately
- Provided by teachers on their own account and at their own risk
"[30] The term ‘privately’ enables the services supplied by the bodies mentioned in Article 13A(1)(i) of the Sixth Directive to be distinguished from those referred to in Article 13A(1)(j), which are provided by teachers on their own account and at their own risk." (Haderer C-445/05)
- Can be given to multiple individuals at once
"[31] The services referred to in Article 13A(1)(j) of the Sixth Directive may include private lessons, for example, in which case there is in principle a link between the actual content of the tuition and the teacher’s qualifications. In that regard, the wording of Article 13A(1)(j) in no way precludes tuition given to several people at a time from being covered by the exemption introduced by that provision." (Haderer C-445/05)
- Need not be a direct contractual relationship with the pupil
"[32] In addition, as the Commission submits, the requirement that the tuition be given privately does not necessarily mean that there has to be a direct contractual link between the recipients of that tuition and the teacher who provides it. Indeed, such a contractual link often exists with persons other than the recipients, such as the parents of the pupils or students." (Haderer C-445/05)
- Tuition not given privately where given by individual/through in the context of courses offered by another body
"[52] In any event, without there being any need to examine the three sets of circumstances listed in the second question referred, it is clear from the order for reference that Mr Eulitz acted as a teacher in the context of training courses offered by another body, EIPOS. According to the findings of the national court, it is that body – and not Mr Eulitz – which was in charge of the education institute within the framework of which Mr Eulitz gave tuition and which provided training to the participants of these courses.
[53] As the German and Greek Governments submit, that fact, in itself, rules out the possibility that Mr Eulitz – and thus Eulitz GbR – could be regarded as giving tuition ‘privately’ within the meaning of Article 13A(1)(j) of the Sixth Directive. The facts set out in the second question, taken together or individually, cannot lead to any different conclusion.
[54] The guidance given by the Court of Justice in Haderer is, moreover, to that effect. In paragraphs 33 to 35 of that judgment, the Court states, in essence, that it appeared that Mr Haderer had made himself available as a teacher to another entity, which paid him as a provider of services to the education system administered by that body, so that a person in the position of Mr Haderer could not be regarded as having acted ‘privately’, but that this was for the referring court to verify, taking account of all the circumstances of the case." (Eulitz C-473/08)
"[34] However, it is clear from those same paragraphs of this judgment that Mr Haderer carried out the activities at issue in the main proceedings on the basis of successive contracts with the Land of Berlin. It appears that, save in the event of courses being cancelled because of a lack of pupils or students, the fees he received were calculated on an hourly basis, irrespective of the number of course participants. In addition, even though the contracts stated that no ‘employment relationship’ – within the meaning of that term under German employment law – was thereby established, Mr Haderer was given financial assistance towards his pension contributions and health insurance, and also a proportional leave allowance. Finally, Mr Haderer carried out the activities at issue in the main proceedings at adult education centres administered by the Land of Berlin.
[35] The matters set out in the preceding paragraph tend therefore to indicate that, far from giving tuition on his own account and at his own risk, Mr Haderer in fact made himself available as a teacher to the Land of Berlin, which paid him as a provider of services to the education system administered by that Land. It is for the referring court to verify this, taking into account all the circumstances of the case." (Haderer C-445/05)
- Even if this may create a lacuna in the exemptions for education
"[36] The Commission submits that to refuse to allow an exemption in situations such as that of the main proceedings is contrary to the common objective of the specific exemptions referred to in Article 13A(1)(i) and (j) of the Sixth Directive, and would create a lacuna in the system established by those two provisions. According to the Commission, tuition given by private teachers may indeed, in certain circumstances, be comparable to the education provided by the ‘bodies’ mentioned in Article 13A(1)(i).
[37] Nevertheless, the mere fact that the two categories of exemption in Article 13A(1)(i) and (j) of the Sixth Directive seek, inter alia, to promote ‘school or university education’ as an activity which is in the public interest cannot support the proposition that, together, those two provisions create a system capable of exempting from VAT activities which do not satisfy the conditions of one or other of them, the terms of which, as observed in paragraphs 16 to 19 of this judgment, are to be interpreted strictly and cover only the activities which are listed therein and described in detail." (Haderer C-445/05)
(3) EXAMINATION SERVICES
Examination services by eligible body
"The provision of examination services—
(a)by or to an eligible body;..." (VATA Sch 9, Group 6, Item 3)
Examination services to person receiving exempt/non-taxable education
"The provision of examination services—
[...]
(b) to a person receiving education or vocational training which is—
(i) exempt by virtue of items 1, 2, 5 or 5A (or would be so exempt but for item 1 or 2 of Part 3); or
(ii) provided otherwise than in the course or furtherance of a business." (VATA Sch 9, Group 6, Item 3)
- Examination services
“Examination services” include the setting and marking of examinations, the setting of educational or training standards, the making of assessments and other services provided with a view to ensuring educational and training standards are maintained." (VATA Sch 9, Group 6, Note 4)
(4) CLOSELY RELATED SUPPLIES
Supplies by/to eligible body closely related to exempt education
"The supply of any goods or services (other than examination services) which are closely related to a supply of a description falling within item 1 (or would be so exempt but for item 1 or 2 of Part 3) (the principal supply) by or to the eligible body making the principal supply provided—
(a) 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
(b) where the supply is to the eligible body making the principal supply, it is made by another eligible body." (VATA Sch 9, Group 6, Item 4)
Note the further limits in Article 134 and see H3. Closely related supplies.
- Supplies of catering in a training restaurant performed by catering students
"[28] In the present case, it is apparent from the order for reference that the practical training was designed to form an integral part of the student’s curriculum and that, if it were not provided, students would not fully benefit from their education.
[30] In that regard, the order for reference notes that the catering functions of the restaurant are all undertaken by students of the College, under the supervision of their tutors, and that the purpose of operating the College’s training restaurant is to enable the students enrolled in catering and hospitality courses to learn skills in a practical context." (Brockenhurst College C-699/15)
- Supplies of performances by arts students
"[31] The same applies to the performing arts courses. The College, through the students enrolled on those courses, stages concerts and performances to enable the students to acquire practical experience.
[32] It must be stated that, without these practical aspects, the education provided by the College in the fields of catering and hospitality and of the performing arts would not have an equivalent value." (Brockenhurst College C-699/15)
- Temporary supply of teacher from one educational establishment to another
"[30] As Horizon College and the Commission essentially submit, the supply of a teacher by one educational establishment to another in order for the teacher temporarily to carry out teaching duties under the responsibility of the latter establishment is an activity which can, in principle, be described as a supply of services closely related to education. Indeed, where there is a temporary shortage of teachers in some educational establishments, making qualified teachers attached to other establishments available to those experiencing the shortage will enable students better to enjoy the education provided by the host establishments." (Horizon College C-434/05 but see H3. Closely related supplies on the other conditions in Article 134)
(5) FUNDING-BASED EDUCATION EXEMPTIONS
Vocational training funded by certain arrangements
The provision of vocational training, and the supply of any goods or services essential thereto by the person providing the vocational training, to the extent that the consideration payable is ultimately a charge to funds provided pursuant to arrangements made under section 2 of the Employment and Training Act 1973, section 1A of the Employment and Training Act (Northern Ireland) 1950 or section 2 of the Enterprise and New Towns (Scotland) Act 1990." (VATA Sch 9, Group 6, Item 5)
- Essential services only includes supplies directly to trainee
For the purposes of item 5 a supply of any goods or services shall not be taken to be essential to the provision of vocational training unless the goods or services in question are provided directly to the trainee." (VATA Sch 9, Group 6, Note 5)
Education/vocational training funded under Welsh arrangements
"The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that
...
(c) the National Assembly for Wales under Part II of the Learning and Skills Act 2000." (VATA Sch 9, Group 6, Item 5A)
- Essential services only includes supplies directly to student/trainee
"For the purposes of items 5A to 5C a supply of any goods or services shall not be taken to be essential to the provision of education or vocational training unless—
(a)in the case of the provision of education, the goods or services are provided directly to the person receiving the education;
(b)in the case of the provision of vocational training, the goods or services are provided directly to the person receiving the training." (VATA Sch 9, Group 6, Note 5A)
Education/vocational training to certain groups, funded by SoS
"The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are—
(a)aged under 19,
(b)aged 19 or over, in respect of education or training begun by them when they were aged under 19,
(ba)aged 19 or over and for whom an EHC plan is maintained,
(c)aged 19 or over but under 25 and subject to learning difficulty assessment, or
(d)aged 25 or over, in respect of education or training begun by them when they were within paragraph (ba) or (c),
to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State." (VATA Sch 9, Group 6, Item 5B)
EHC plan
"In item 5B, “EHC plan” and “subject to learning difficulty assessment” have the same meanings as in the Education Act 1996." (VATA Sch 9, Group 6, Note 5B)
Apprenticeship and adult education programmes
"The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are aged 19 or over, to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State in exercise of functions under Part 4 of the Apprenticeships, Skills, Children and Learning Act 2009." (VATA Sch 9, Group 6, Item 5B)
(6) YOUTH CLUB FACILITIES
Provision of youth club facilities to members
"The provision of facilities by—
(a)a youth club or an association of youth clubs to its members; or
(b)an association of youth clubs to members of a youth club which is a member of that association." (VATA Sch 9, Group 6, Item 6)
- Youth club
"For the purposes of item 6 a club is a “youth club” if—
(a)it is established to promote the social, physical, educational or spiritual development of its members;
(b)its members are mainly under 21 years of age; and
(c)it satisfies the requirements of Note (l)(f)(i) and (ii)." (VATA Sch 9, Group 6, Note 5A)
PRIVATE EDUCATION EXCEPTION
Provision of education or vocational training by a private school not exempt
- General exclusion
XX
- English as a foreign language (not excluded)
XX
- Nursery class education (not excluded)
XX
- Higher education (not excluded)
XX
Board and lodging closely related to non-exempt education supply (not exempt)
Private school (meaning)
VAT
XX