Value Added Tax Act 1994 Schedule 9 Part 3

Exceptions to VAT exemptions for private school education

Schedule 9 Part 3 removes the VAT exemption from certain education, vocational training, and boarding services provided by private schools, making those supplies subject to VAT at the standard rate.

• Education provided by a private school is no longer VAT-exempt, except for teaching English as a foreign language, nursery classes, and higher education courses, which remain exempt.
• Vocational training provided by a private school is also removed from VAT exemption and becomes subject to VAT.
• Board and lodging closely related to the now-taxable education or vocational training at a private school likewise loses its VAT exemption.
• Anti-avoidance rules prevent private schools from channelling education through connected eligible bodies, or through arrangements whose main purpose is to keep the supply exempt from VAT.