From 1 August 2019, higher education providers in England who currently qualify for VAT exemption by virtue of being higher education corporations or designated institutions will need to be registered by the Office for Students in the ‘Approved (fee cap)’ category under the Higher Education and Research Act 2017, if exemption is to continue.
The government announced at Budget 2018 it would amend the VAT legislation from 1 August 2019 to ensure continuity of VAT treatment for English higher education (HE) providers, following changes in the Higher Education and Research Act 2017 affecting the way HE providers are funded from the start of the 2019 to 2020 academic year.
The government will make the necessary amendments to the definition of an eligible body in VATA 1994 through secondary legislation in due course.
These changes do not affect education in Scotland, Wales, or Northern Ireland. English universities authorised by the Office for Students, by Royal Charters, or by Act of Parliament to use the university title are also not affected.
HMRC has published guidance on the changes and action HE providers may need to take in Revenue and Customs Brief 11/2018 (bit.ly/2E3SeB3) and VAT Information Sheet 8/2018 (bit.ly/2QvvosD).
From 1 August 2019, higher education providers in England who currently qualify for VAT exemption by virtue of being higher education corporations or designated institutions will need to be registered by the Office for Students in the ‘Approved (fee cap)’ category under the Higher Education and Research Act 2017, if exemption is to continue.
The government announced at Budget 2018 it would amend the VAT legislation from 1 August 2019 to ensure continuity of VAT treatment for English higher education (HE) providers, following changes in the Higher Education and Research Act 2017 affecting the way HE providers are funded from the start of the 2019 to 2020 academic year.
The government will make the necessary amendments to the definition of an eligible body in VATA 1994 through secondary legislation in due course.
These changes do not affect education in Scotland, Wales, or Northern Ireland. English universities authorised by the Office for Students, by Royal Charters, or by Act of Parliament to use the university title are also not affected.
HMRC has published guidance on the changes and action HE providers may need to take in Revenue and Customs Brief 11/2018 (bit.ly/2E3SeB3) and VAT Information Sheet 8/2018 (bit.ly/2QvvosD).
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