- The Upper Tribunal held that the private colleges’ courses were not VAT exempt, even though they led to recognized qualifications like HNCs, HNDs, and degrees.
- VAT exemption depended on both the type of education and the provider’s legal/regulatory status; the colleges were not comparable to universities or further education corporations.
- Student-loan payments were not treated as direct government funding, because the contract was still between the student and the college.
- The decision shows private education providers cannot assume exemption just because courses resemble university teaching or are eligible for student finance.
- Only the specific English-language teaching exemption applied to those courses, not to all services provided.
Source: deeksvat.co.uk
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.
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