Supply of education by the university for payment is exempt from VAT.

The VAT exemption is not only applicable to the supply of traditional education such as undergraduate postgraduate degrees, but it also extends to supplies relating to: - seminars

• conferences

• short courses and lectures

• sporting and recreational courses

VAT exemption applies to both conferences and seminars delivered to registered students, private individuals or a business buying courses. This because academic conferences that are organised by the university are considered as supply of education hence the exempt VAT treatment.

Closely related supplies such as catering, accomodation, transportation when delivered to delegates of conference would also benefit from VAT exemption. These closely related supplies must be for the direct use of the attendees and necessary for the delivery of education to them. So, supplies of alcohol, visiting local vineyards would not be regarded as necessary for the delivery of education and are subject to VAT at the standard rate.

Similarly additional nights’ accommodation after the completion of a conference may qualify for VAT exemption. If it arises due to the logistical difficulties of arriving in time for the start or in getting home at a reasonable time at the end, then they can be considered as closely related to the conference. If not, then they should be considered as separate supply and would be standard rated for VAT.

Conferences organised jointly by the university and another body

Conferences organised jointly by the university and another eligible body should be treated the same way as one provided solely by the university and VAT treatment should be exempt, provided that the conference is in connected to education, the other party is an eligible body, and financial transactions are accounted for in the records of the university.

Recharge costs to another eligible body for jointly organised educational conference would qualify for VAT exemption, as these are generally going to be closely related to supply of education costs. Note that non-closely related costs will be standard rated, like supply of alcohol and supplies of catering and accommodation to facilitators i.e. non-students.

Supply of conference facilities

The letting of the university’s conference facilities to other ‘eligible bodies’ such as universities, colleges would be closely connected with education, provided that the other eligible body will use the facilities for the provision of education to fee paying students and fee paying conference attendees. A certificate should be obtained from the external party confirming that they are an eligible body.

Where the party letting conference facility is not an eligible body and the facility is not being used for educational purposes, the supply should not be treated as exempt for VAT purpose and in this case, the provision of conference rooms, projectors, copying services and staff time will be subject to VAT at the standard rate.

General room hire where the university hires out a room or a hall, would in most cases be exempt from VAT. Except, the hire of room would be standard rated for VAT if:

1. The room is in a building opted to tax.
2. The room hire is for the purpose of a supply of catering (e.g. a wedding).
3. The hire is more than just of room but of space with facilities (e.g. lab hire).

Conference, catering and accommodation

Supplies of accommodation, catering, and other facilities to delegates attending the conference are classed as closely related to the supply of education and therefore also exempt from VAT.

This exemption does not extend to alcoholic drink and social events that are not part of the educational content of the conference. The exempt VAT treatment does not extend to supplies of accommodation and catering to guest speakers, staff, organisers, spouses or guests of the delegates or others who are not attending the conference as a student.