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No VAT exemption for commercial providers of higher education

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HMRC has announced that it will not proceed with proposals first aired in 2012 to extend the VAT education exemption to commercial providers of higher education and further education.

Business Brief 18/2014 explains that HMRC was unable to find a solution which was acceptable to the majority of the for-profit sector and also met government objectives. One of the issues was the inability of commercial providers to recover input tax if their supplies of education became exempt. The Brief also noted that a number of higher education providers have obtained ‘university status’ and so benefit from the exemption in any event.

Issue: 1214
Categories: News , Indirect taxes , VAT