School Charges To External Consumers - VAT

First Tier Tribunal has made an interesting decision in respect of charges made by schools and colleges for activities which are seemingly supplied to parties other than pupils.

In the case of Brockenhurst College the charges were for catering provided by their students to friends and family, and charges for admission to school concerts.

The College argued that the supplies were exempt as part of an education supply to pupils (or to be exact, a supply 'ancillary' to their education). HMRC argued that the supplies were of catering and of admission to a performance and not of education. The tribunal agreed with the College. In the circumstances it saw these as ancillary supplies and thus exempt from VAT. The purpose of catering (for instance) was to educate the student and the consumer did not make the purchase in order to obtain a meal.