Education or Recreation
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21st January 2014
A recent case
considered whether the supply of belly dancing lessons by an
teacher could be treated as exempt from VAT.
contended the VAT exemption for the supply of private tuition applied,
the Commissioners stated that the subject was not one which was
taught in a school or university and therefore the exemption could not
apply. The Tribunal agreed with the Commissioners and ruled that the
supplies of belly
dancing tuition services by the independent teacher were subject to
VAT. The Appellant was therefore liable to register for VAT.
This case once again
demonstrates the complexities of the VAT exemption available for the
education and particularly private tuition. I am sure that we would all
agree that dance is a subject that it ordinarily taught in a school or
university and therefore the challenge that belly dancing is a form of
in our opinion completely valid. In fact, spending just five minutes
researching the matter I noted Manchester University even offers a
in Belly Dancing (starting 12th February if you are interested!).
The judgment in my
opinion seems slightly unfair and I envisage that we will see many more
similar to this in the near future. Education is evolving and many
schools are offering subjects and vocational qualifications in areas
one time would have never been considered an option. Perhaps this is an
area that HMRC should consider further.
We recommend that if
you have any uncertainty regarding the VAT liability of supplies of
then you should give our free helpline a call. It's advisable to act
prudently and if you feel that your client's supplies may be VATable we
have prior rulings or correspondence with HMRC on the areas your client
involved in and could provide valuable input.
About the Author
VAT People are leading VAT and Customs Duty
consultants based in the
North West of England. We work with a wide range of businesses
throughout the UK as well as assisting our accountancy colleagues to
unravel the thorny VAT issues for their clients. We are one of the UK's
largest and most comprehensive sources of VAT and Customs advice, our
consultancy team having over 140
years of experience in VAT and Customs
gained in either HMRC or a Big 4 accountancy practice environment.
Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.
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Article Published/Sorted/Amended on Scopulus 2014-02-04 12:45:28 in Tax Articles