VATEDU10000 | History

Prior to 1 August 1994, the VAT liability of education in part depended on the nature of supply or the profitability of the supply in question. However, this approach was generating uncertainty and was open to differing interpretations in HM Customs and Excise, and in the courts and education sector. As a result - and also to seek greater alignment with EC law - a new Group 6 was incorporated with effect from 1 August 1994 into Schedule 9 of the VAT Act 1994. This makes exemption in the area of education now largely dependent on the type of body making the supply.

With effect from 1 August 2013 the VAT exemption for supplies of research between eligible bodies was withdrawn except for supplies where the written contract was entered into before 1 August 2013 where certain transitional arrangements may apply.