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HMRC internal manual

VAT Education Manual

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HM Revenue & Customs
Updated
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Scope and structure of VATEDU; related guidance

VAT manuals are the main reference material on VAT for people in HM Revenue and Customs. These manuals outline HMRC’s formal procedures and work systems, and give managers and staff HMRC’s rules and guidelines and general advice on interpreting them.

VATEDU will help you to take a logical approach towards resolving questions of VAT liability in the education sector.

For convenience (unless otherwise stated) wherever the word ‘education’ is used you should read it as meaning education, vocational training or research, as the case may be.

VATEDU will help you to answer these four key questions:

### Is the education a supply for VAT purposes? This depends on whether the funding of the education is consideration for a supply of services. You will find guidance on this in VATEDU25000.
   
### If it is a supply, is that supply a business activity? This depends upon the criteria for determining business and non-business supplies. You will find guidance on this in VATEDU25000.
### Is the person providing the education entitled to exempt those supplies? Exemption is largely dependent on the status of the provider. You will find guidance on the types of organisation that are entitled to exempt their supplies in VATEDU39000.
### Are the supplies covered by the exemption? It is the nature of what is supplied that ultimately decides the VAT liability. You will find guidance on the coverage of the exemption in VATEDU36000, VATEDU37000 and VATEDU38000.

VATEDU also provides various other information on education, research, vocational training and its VAT treatment.

Finding your way around VATEDU

There is a general explanation of the history of education VAT reliefs at VATEDU10000
   
There is an outline of the relevant law at VATEDU15000
If you have read everything and are still stuck, read VATEDU20000
If you are not sure whether a transaction is a business supply read VATEDU25000
The scope of the Group 6, items 1-5 VAT reliefs are explained as follows:  
* relief on education, research and vocational training provided by eligible bodies VATEDU35000
* you can find out what eligible bodies are at VATEDU39000
* relief on related supplies made to eligible bodies VATEDU50000
* relief on private tuition, including tutorial colleges VATEDU40000
* examination services including school inspections VATEDU45000
* The scope of the VAT relief on vocational training VATEDU55000
These sections deal with miscellaneous aspects of the VAT treatment of particular educational entities:  
* local authority schools VATEDU65000
* academies VATEDU70000
* education action zones VATEDU75000
* European Commission Framework 5 & 6 Research Programmes VATEDU95000
* Connexions services VATEDU28500
These sections deal with other VAT aspects of other related supplies:  
* supplies of accommodation by trading companies of eligible bodies VATEDU80000
* construction, land and property VATEDU85000
* supplies of fuel and power VATEDU90000