VAT rules
Is education exempt from VAT in the UK?
Short answer
Only in certain cases. Education is exempt when an eligible body supplies it, when a sole trader or partner gives private tuition in a school or university subject, when examination services meet set conditions, and when vocational training is funded by the Department for Education or a similar body. Other education, including most commercial training, is standard-rated at 20%. Since July 2026 the St Patrick's ruling has opened a possible further route for private colleges.
The routes to exemption
| Route | Who it covers | Main condition |
|---|---|---|
| Eligible body | Schools, universities, FE colleges, approved fee cap providers, public bodies, qualifying non-profits | The supplier is on the list in the law |
| English as a foreign language | Commercial English language schools | EFL tuition only |
| Private tuition | Sole traders and partners | Taught personally, in a subject taught in schools or universities |
| Examination services | Any provider | Supplied by or to an eligible body, or to a learner receiving exempt education or funded training |
| Funded vocational training | Any provider | To the extent it is ultimately funded by the Department for Education, an apprenticeship service account or a devolved equivalent |
| Closely related supplies | Eligible bodies | For the learner's direct use and necessary for the education, such as some accommodation, catering and trips |
| St Patrick's route | Private providers of higher and further education | Courses students would see as the same as those at eligible bodies. HMRC is appealing. |
Exemption is not a choice
If your supplies meet the conditions for exemption, they are exempt. You cannot opt to charge VAT instead because it suits you. That cuts both ways. Exempt income means no VAT on your fees, but it also means you cannot recover the VAT on costs linked to that income. For a provider whose customers are VAT-registered businesses, exemption can leave everyone worse off. See training companies and input tax.
What exempt means in practice
- You do not charge VAT on the exempt fees.
- Exempt income does not count towards the £90,000 VAT registration threshold, which is based on taxable supplies.
- You cannot recover input tax on costs used to make exempt supplies, unless it falls within the partial exemption de minimis limits.
Private schools are different
Since 1 January 2025 education and boarding supplied by private schools in the UK for a charge have been standard-rated at 20%. That change has nothing to do with the St Patrick's ruling, which is about providers of higher and further education. This site does not deal with private school fees.
Every guide in this section
- Is education VAT exempt?Education is exempt from VAT only in certain cases. The routes to exemption explained in plain English for independent providers.
- What is an eligible body?Which organisations count as eligible bodies for the VAT education exemption, including the non-profit test and approved fee cap providers.
- VAT Notice 701/30 explainedA plain English guide to HMRC VAT Notice 701/30 on education and vocational training, and how it applies to independent providers.
- Private tuitionPrivate tuition is VAT exempt when a sole trader or partner personally teaches a school or university subject. Why companies and agencies usually do not qualify.
- English as a foreign languageCommercial English language schools are eligible bodies for EFL tuition only. What that covers and what stays standard-rated.
- Examination servicesWhen exam setting, marking, assessment, accreditation and certification are VAT exempt, and why it depends on who you supply.
- Funded vocational trainingVocational training funded by the Department for Education or an apprenticeship service account is VAT exempt to the extent it is funded.
- Training companiesDo training companies charge VAT? When commercial training is standard-rated, and when exemption might help or hurt.
- When education is standard-ratedThe common cases where education and training carry 20% VAT, including commercial providers, corporate training and private schools.
Sources
- VAT Notice 701/30, education and vocational training (updated 27 January 2025): GOV.UK
- VAT Act 1994 Schedule 9 Group 6: legislation.gov.uk
- VAT registration thresholds: GOV.UK
- Revenue and Customs Brief 9 (2026): GOV.UK