INDEPENDENT SCHOOLS AND VAT
Moderator: Moderators
INDEPENDENT SCHOOLS AND VAT
One often hears comments on the fact that independent schools are not required to pay VAT, with the suggestion that a British government could, if it so wished, remove such a 'privilege.' In fact, ALL children's education facilities are exempt from VAT by an EU Council Directive and specifically Article 132 thereto. I quote:
"Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax
CHAPTER 2
Exemptions for certain activities in the public interest
Article 132
1. Member States shall exempt the following transactions:….
……..
(i) the provision of children's or young people's education, school or university education, vocational training or retraining, including the supply of services and of goods closely related thereto, by bodies governed by public law having such as their aim or by other organisations recognised by the Member State concerned as having similar objects;..."
I am not seeking to make a political point, but this means that if a British political party wished to end VAT-exemption for independent schools they could only do so once the UK has left the EU. Conversely, if the UK remains in the EU, then the only way of stopping VAT exemption for independent schools would be by reversing this directive, which would have to apply to ALL schools (i.e., both independent and State-run) and would apply throughout the EU. Somehow I do not see that being very popular with other countries!
David
"Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax
CHAPTER 2
Exemptions for certain activities in the public interest
Article 132
1. Member States shall exempt the following transactions:….
……..
(i) the provision of children's or young people's education, school or university education, vocational training or retraining, including the supply of services and of goods closely related thereto, by bodies governed by public law having such as their aim or by other organisations recognised by the Member State concerned as having similar objects;..."
I am not seeking to make a political point, but this means that if a British political party wished to end VAT-exemption for independent schools they could only do so once the UK has left the EU. Conversely, if the UK remains in the EU, then the only way of stopping VAT exemption for independent schools would be by reversing this directive, which would have to apply to ALL schools (i.e., both independent and State-run) and would apply throughout the EU. Somehow I do not see that being very popular with other countries!
David
Re: INDEPENDENT SCHOOLS AND VAT
The scope of VAT is immense, and clearly for the Directive to be amended to remove this exemption would be a Herculean task. Furthermore, if VAT on school fees comes in, it will most likely come in too on to University Tuition fees, over £9,000 pa. now AIUI, adding c. £1,800 pa to the cost or a tidy £5,400 for a 3 year course.
I have a fading memory of reading of a VAT ruling on the supply of cattle vs horse semen and whether or not it is also VAT-able. I may be wrong, or have mis-remembered the issue, VAT law not being a hobby, but I believe that if the genitor of the semen is commonly used as food, that product is also VAT-exempt (or zero-rated, I can't be bothered to check), whereas if the animal is not food (generally) then it is VATable. I think it might have had something to do with racehorses.
My lasting impression was that whoever it was in Brussels whose job it was to consider such a point richly deserved their fate.
I have a fading memory of reading of a VAT ruling on the supply of cattle vs horse semen and whether or not it is also VAT-able. I may be wrong, or have mis-remembered the issue, VAT law not being a hobby, but I believe that if the genitor of the semen is commonly used as food, that product is also VAT-exempt (or zero-rated, I can't be bothered to check), whereas if the animal is not food (generally) then it is VATable. I think it might have had something to do with racehorses.
My lasting impression was that whoever it was in Brussels whose job it was to consider such a point richly deserved their fate.
Re: INDEPENDENT SCHOOLS AND VAT
Gosh - horse/bull semen and VAT - now there's a subject one could study for ever! I can think of all sorts of comments, but will resist them.
I think the point about schools and VAT is that many UK politicians speak as if VAT relief applies only to independent schools and could be removed from them at the UK government's whim. The contradiction, of course, is that those who want to abolish independent schools exemption want to stay in the EU, which would prevent them from removing the exemption, but they don't want to leave the EU, although that would enable them to remove the exemption. Life at Westminster must be very hard!
David
I think the point about schools and VAT is that many UK politicians speak as if VAT relief applies only to independent schools and could be removed from them at the UK government's whim. The contradiction, of course, is that those who want to abolish independent schools exemption want to stay in the EU, which would prevent them from removing the exemption, but they don't want to leave the EU, although that would enable them to remove the exemption. Life at Westminster must be very hard!
David
-
- Button Grecian
- Posts: 4097
- Joined: Tue Feb 08, 2005 12:19 pm
- Real Name: David Brown ColA '52-'61
- Location: Essex
Re: INDEPENDENT SCHOOLS AND VAT
I love it given that horse meat is commonly human food at least in France and it has been exported to the UK for human food. Yes, the erk in Brussels would be having a fit trying to deal with that one.
What happens if a politician drowns in a river? That is pollution.
What happens if all of them drown? That is solution!!!
What happens if all of them drown? That is solution!!!
- J.R.
- Forum Moderator
- Posts: 15835
- Joined: Wed Mar 09, 2005 4:53 pm
- Real Name: John Rutley
- Location: Dorking, Surrey
Re: INDEPENDENT SCHOOLS AND VAT
I don't see where horse meat etc comes into this equation.
I have eaten and fully enjoyed horse meat in France. How this affects tax and Independent schools is beyond me.
I have eaten and fully enjoyed horse meat in France. How this affects tax and Independent schools is beyond me.
John Rutley. Prep B & Coleridge B. 1958-1963.
-
- GE (Great Erasmus)
- Posts: 183
- Joined: Mon Aug 20, 2018 5:17 pm
- Real Name: Stephen O'Rourke
- Location: East Anglia
Re: INDEPENDENT SCHOOLS AND VAT
I see nothing wrong with a VAT exemption for all education.
Education costs enough as it is. Adding VAT would just make it more elitist, increase the divide between haves and have-nots, and stop those on a modest income from improving their education and thus their lot in life.
Education costs enough as it is. Adding VAT would just make it more elitist, increase the divide between haves and have-nots, and stop those on a modest income from improving their education and thus their lot in life.
-
- Button Grecian
- Posts: 4097
- Joined: Tue Feb 08, 2005 12:19 pm
- Real Name: David Brown ColA '52-'61
- Location: Essex
Re: INDEPENDENT SCHOOLS AND VAT
I get the distinct impression that this is exactly what certain politicians want to do - suppress freedom of education and thought and everything else. just like H G Wells's book
What happens if a politician drowns in a river? That is pollution.
What happens if all of them drown? That is solution!!!
What happens if all of them drown? That is solution!!!
Re: INDEPENDENT SCHOOLS AND VAT
I think the VAT on school fees idea is used by those who hate the freedom that private education represents but are too cowardly to openly state their aims, preferring to starve the blameless lamb rather than openly slit its throat.
On the subject of horse meat, I have seen it in an Italian supermarket in Venice, with not only its own section 'Cavali' but also a pictogram showing a horse's profile, it was next to the pork IIRC.
At CH once, we had some rather suspiciously sweet burgers, c. 1980-1981, and I recall wondering if they might have been made from horse meat, which I understood to be 'sweeter' than beef. I suppose that now I'll never neigh, er.. know.
On the subject of horse meat, I have seen it in an Italian supermarket in Venice, with not only its own section 'Cavali' but also a pictogram showing a horse's profile, it was next to the pork IIRC.
At CH once, we had some rather suspiciously sweet burgers, c. 1980-1981, and I recall wondering if they might have been made from horse meat, which I understood to be 'sweeter' than beef. I suppose that now I'll never neigh, er.. know.
- marty
- Grecian
- Posts: 835
- Joined: Tue Jan 18, 2005 1:29 pm
- Real Name: Marty E
- Location: Buckinghamshire
Re: INDEPENDENT SCHOOLS AND VAT
Is that what prompted your forum name, Mr Ed?
My therapist says I have a preoccupation with vengeance. We’ll see about that.
Re: INDEPENDENT SCHOOLS AND VAT
Yes there is a little known scheme called AIPS (assisted instrument purchase scheme) that allows pupils of state schools learning an instrument to purchase their instrument nominally through the school to not have to pay the VAT - the local music shop flagged it up to us when we were buying a trombone for our daughter and helped the school do the necessary paperwork. Saved us a substantial amount
https://www.gov.uk/hmrc-internal-manual ... vatgpb7825
https://www.gov.uk/hmrc-internal-manual ... vatgpb7825
Re: INDEPENDENT SCHOOLS AND VAT
Perhaps 7 years of regular doses of horse meat have had serious side-effects.Is that what prompted your forum name, Mr Ed?
wurzel,
That's a very good point worth noting.
- J.R.
- Forum Moderator
- Posts: 15835
- Joined: Wed Mar 09, 2005 4:53 pm
- Real Name: John Rutley
- Location: Dorking, Surrey
Re: INDEPENDENT SCHOOLS AND VAT
Neigh, Neigh, and thrice Neigh !! (Frankie Howard.)
John Rutley. Prep B & Coleridge B. 1958-1963.