- The UT considered if certain education services were exempt from VAT.
- St Patrick’s International College and others appealed HMRC’s decision to the FTT.
- The dispute involved Group 6, Schedule 9, VATA, regarding educational supply exemptions.
- HMRC accepted English language tuition as exempt but not other educational services.
- HMRC rejected the principle of fiscal neutrality for similar VAT treatment.
- Appellants claimed their courses were similar to those offered by exempt institutions.
- They argued unpaid student loans should make courses exempt under certain rules.
- The FTT rejected these arguments, leading to an appeal to the UT.
- The UT dismissed the appeals, agreeing with the FTT that the supplies were not exempt.
- The UT found no applicable exemptions and rejected the fiscal neutrality claim.
- The UT stated VAT treatment must be determined at the time of supply, not on future events.
- The decision clarifies the narrow scope of VAT exemptions for education providers.
- It provides insight into the application of fiscal neutrality to VAT exemptions.
Source: rpclegal.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
