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HMRC internal manual

VAT Education Manual

From
HM Revenue & Customs
Updated
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Group 6 Item 4 Closely related supplies: closely related goods and services sold to pupils: how to decide the correct treatment

The following table will help you to decide the correct treatment.

If the supply is made by an eligible body (see VATEDU39000) and it…  then…
   
supplies education, research or vocational training in the course or furtherance of business (see VATEDU25000) the closely related goods and services it sells to its pupils etc are exempt.
does not supply education, research or vocational training in the course or furtherance of business but provides it for no charge (see VATEDU25000) the closely related goods and services it sells to its pupils etc are non-business and outside the scope of VAT providing it sells them at or below cost.

If the goods and services it sells are not closely related to the education it provides, they are standard-rated unless relief is available elsewhere.