Education is an area where there is often considerable scope for misunderstanding the VAT position. Under EU VAT law the exemption is contained in Article 132(1)(i) of the Principal VAT Directive and comprises ‘the provision of children's or young people's education school or university education vocational training or retraining including the supply of services and of goods closely related thereto by bodies governed by public law having such as their aim or by other organisations recognised by the Member State concerned as having similar objects’. In the UK this has been implemented by providing for the exemption to apply to supplies of education by ‘eligible bodies’ which principally applies to universities...
