VAT rules
When is education standard-rated for VAT?
Short answer
Education and training carry VAT at 20% when a VAT-registered provider that is not an eligible body supplies them and no specific exemption applies. HMRC's examples include commercial tutorial colleges, computer training, secretarial colleges and correspondence colleges. Since 1 January 2025 private school fees and boarding are standard-rated too.
The usual cases
- Courses sold by a profit-making company that is not an eligible body, where the training is not funded, not EFL and not private tuition by an individual.
- Corporate and professional training sold to businesses.
- Tuition delivered by staff or subcontractors of a tutoring business, or sold by a tutoring company.
- Examination services supplied to customers who are neither eligible bodies nor learners receiving exempt education.
- Courses in leisure or hobby subjects that are not taught in schools or universities, when supplied by a non-eligible provider.
Standard-rated even at eligible bodies
Some supplies are standard-rated even when a university or college makes them, because they are not closely related to the education. HMRC lists sales to staff, shop sales, vending machines, uniforms, sports clothing, admission charges and personal services charged separately.
Private schools
From 1 January 2025 all education services and vocational training supplied by private schools in the UK for a charge are standard-rated, and so is boarding. This is separate from anything on this site. The St Patrick's ruling concerns providers of higher and further education and does not help private schools.
Standard-rated today, but for how long?
HMRC's policy is that education from providers who are not eligible bodies is standard-rated, and that has not changed. The St Patrick's ruling means some private colleges' courses were in fact exempt, and HMRC is appealing that to the Supreme Court. Until it decides, providers in that position are in a grey area. See HMRC Brief 9 (2026).