The Labour Party has proposed to remove the VAT exemption for private school fees, which has raised questions about how this change would be implemented. Currently, fee-paying and non-fee-paying schools are treated differently under the UK VAT regime. State-administered schools receive government funding and are not considered ‘in business’ for VAT purposes, while private schools are exempt from VAT but cannot recover it. This proposal would mark a significant VAT event as it would be the first major difference in legislation between the UK and EU VAT regimes.
Source Grant Thornton
Latest Posts in "United Kingdom"
- The UK Should Lower or Abolish, Not Raise, Its VAT Registration Threshold
- UK Should Lower or Abolish VAT Threshold to Boost Small Business Growth and Efficiency
- Lowering VAT Threshold Risks Breaching Labour’s Manifesto, Warns Self-Employed Association
- UK VAT Threshold Debate: Growth-Boosting Increase or Revenue-Raising Decrease at Autumn Budget?
- Chancellor Proposes Raising VAT Registration Threshold to £100,000 to Boost UK Economy
