The UK government has announced it will amend its VAT legislation, effective from 1st August 2019, to ensure that English higher education (HE) providers may continue to benefit from the VAT exemption for educational services.

The UK government has announced it will amend its VAT legislation, effective from 1st August 2019, to ensure that English higher education (HE) providers may continue to benefit from the VAT exemption for educational services.

This is in response to changes, as of the start of the new academic year 2019-2020, to the way English HE providers will receive funding from the Office of Students (OfS).  The current rules, which provide that certain HE institutions are eligible to receive government grant funding, will no longer apply to English HE providers from 1st August 2019. Instead, as of this date, these bodies are required to register with the OfS in the “approved (fee cap) category.” to qualify.

Hence, the corresponding UK VAT legislation will be updated to allow HE providers, registered with the OfS in the “approved (fee cap) category.” to continue to exempt their supplies of education from VAT.  These forthcoming changes do not apply to universities and charities and will not impact their existing VAT treatment.

If you wish to discuss this change further, or if you have any questions, please do get in touch with us.

By |February 8th, 2019|