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HMRC internal manual

VAT Education Manual

Group 6 Item 1 Education, research and vocational training provided by eligible bodies: what is vocational training?: exempt supplies of vocational training by non-eligible bodies

If your trader either contracts or subcontracts to provide education or vocational training under one of the Government’s approved vocational training schemes and its services are ultimately funded by:

  • the Young People’s Learning Agency;
  • the Skills Funding Agency;
  • the National Council for Education and training for Wales;
  • a Local Enterprise Company; or
  • the European Social Fund (under a scheme approved by the Department for Education)

then the supply is exempt under the VAT Act 1994, Schedule 9 Group 6 item 5 or 5A (reproduced at VATEDU15000).

The training might also be exempt if the trader is a sole proprietor or partnership. (See VATEDU40000).