The Education Exemption
The provision of education by the University to our students is exempt from VAT. This is because the University is an “eligible body” for the purposes of the education exemption.
Education is not normally exempt from VAT when supplied by organisations that are not eligible bodies. This means subsidiaries of the University may have to charge VAT when providing education.
HMRC regard education as meaning a course, class or lesson of instruction or study in any subject, whether or not normally taught in schools, colleges or universities and regardless of where and when it takes place.
Education includes lectures, educational seminars, conferences and symposia, together with holiday, sporting and recreational courses which involve tuition. It also includes the provision of distance learning and associated materials.
Any vocational training provided by the University is also exempt from VAT. This 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