Aug 25, 2025
VAT in Education and Training: What’s Exempt, What’s Taxable, and How to Stay Compliant
Introduction
Education is one of the most VAT-sensitive sectors in the UK. While many teaching services are VAT exempt, not all courses or training qualify. Misunderstanding the rules can leave schools, tutors, and training providers exposed to unexpected VAT costs.
VAT Exemption for Education – The Core Rules
Education provided by eligible bodies (such as schools, universities, and charities) is exempt from VAT.
This applies to tuition in subjects commonly taught in schools or universities.
Exemption also applies to closely related goods and services (like student course materials).
But not every organisation or training activity qualifies.
Who Qualifies as an Eligible Body?
Schools, colleges, and universities.
Non-profit-making organisations providing education.
Government-funded training bodies.
Certain examination boards.
Commercial companies that provide training do not usually qualify — meaning their services may be standard-rated at 20%.
Where VAT Still Applies
Private training providers (e.g., IT bootcamps, driving schools, or professional coaching) typically must charge VAT at 20%.
Courses not commonly taught in schools/universities (like niche hobbies or corporate seminars) are usually taxable.
Accommodation, catering, or extra services offered by schools/universities may also attract VAT.
Example: A Training Company vs a College
A college running GCSE maths classes = exempt from VAT.
A private training company running a project management course = VAT standard-rated at 20%.
Both provide “education” — but only one qualifies as an “eligible body.”
Why VAT Matters in Education
Exemption sounds positive but means you can’t reclaim VAT on most costs.
Schools and colleges may face hidden VAT costs unless properly planned for.
Private training companies risk penalties if they wrongly treat their courses as exempt.
Wexley & Associates ensure education providers and training businesses understand their obligations, avoid misclassification, and minimise VAT costs.
Call to Action
VAT in education isn’t straightforward. Whether you run a school, university, or training company, we’ll help you get clarity — and peace of mind. Contact Wexley & Associates today.
