Etienne Wong (Old Square Tax Chambers) examines how Wakefield College has supplanted Longridge as the final word on what ‘business’ means for VAT.
Wakefield College offers a variety of (mostly) vocational courses. The majority of its further education students pay no tuition fees at all. Of the remainder some (mainly overseas students) pay full fees while others (such as partially grant-funded students) pay reduced fees.
The question for the Court of Appeal ([2018] EWCA Civ 952) was whether the college carried on an economic activity for VAT purposes when providing further education courses for a fixed (but public-subsidised) fee. If not then certain construction services that had been supplied to it would be subject to VAT at the zero rate. On the other hand if it was carrying on an economic activity those same services would be subject to VAT at the standard rate.
The court concluded...
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Etienne Wong (Old Square Tax Chambers) examines how Wakefield College has supplanted Longridge as the final word on what ‘business’ means for VAT.
Wakefield College offers a variety of (mostly) vocational courses. The majority of its further education students pay no tuition fees at all. Of the remainder some (mainly overseas students) pay full fees while others (such as partially grant-funded students) pay reduced fees.
The question for the Court of Appeal ([2018] EWCA Civ 952) was whether the college carried on an economic activity for VAT purposes when providing further education courses for a fixed (but public-subsidised) fee. If not then certain construction services that had been supplied to it would be subject to VAT at the zero rate. On the other hand if it was carrying on an economic activity those same services would be subject to VAT at the standard rate.
The court concluded...
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