VATEDU53200 - Group 6 Item 4 Closely related supplies: goods and services sold to the pupils etc of other eligible bodies

The following will help you to decide if the business should charge VAT on closely related goods and services it sells to the pupils, students and trainees of other eligible bodies when it is not supplying education to them

  • If the supply is made by an educational institution such as a school, college or university which are eligible body (see VATEDU39000), then it may not charge VAT on the closely related goods and services it provides direct to the pupils, students and trainees of other schools, colleges or universities that are also eligible bodies.
  • If the supply is made by an eligible body other than a school, college or university (see VATEDU39000), then it should charge VAT on the closely related goods and services it provides unless relief is available elsewhere.

The following gives further examples. Where no VAT is chargeable, the liability of the supply will follow the liability of the principal related supply and be either exempt or outside the scope

  • If the supply is made by a school and it shares a catering outlet with another educational institution that is also an eligible body, then it may not charge VAT on the meals it provides direct to the pupils or students of that institution.
  • If the supply is made by a university and it contracts to provide conference facilities to another eligible body rather than direct to its students, then it should charge VAT unless the recipient body is going to use the facilities in connection with an exempt supply of education etc - see VATEDU25000.
  • If the supply is made by an eligible body (see VATEDU39000) and it supplies closely related goods and services to a local authority maintained school (see VATEDU65000), then it should charge VAT because the school does not supply education but provides it for no charge - see VATEDU25000.
  • If the supply is made by an eligible body and it supplies catering and accommodation to a charity which uses them in connection with free training for its employees, then it should charge VAT because the charity is not supplying the training.

If you are still not certain whether your customer, which is an eligible body, should charge VAT, follow the procedure set out in the decision below.

Step 1

Are its supplies direct to pupils or students of an educational institution (school, college, university) or local authority (LA)?

  • Yes, go to step 2
  • No, go to step 3.

Step 2

Is it an educational institution or local authority?

  • Yes, its supplies are not liable to VAT
  • No, its supplies are standard-rated

Step 3

Are its supplies to a body supplying education by way of business (charging fees - see VATEDU25000)?

  • Yes, its supplies are not liable to VAT
  • No, its supplies are standard-rated