Reply To: VAT on Teaching of English as a foreign Language (TEFL)

Forum Categories VAT REGISTRATION VAT on Teaching of English as a foreign Language (TEFL) Reply To: VAT on Teaching of English as a foreign Language (TEFL)

#55864

The VAT consequences for educational services/goods provided by an eligible body exempt and any ‘closely related’ goods or services provided are exempt. However ales of other goods or services are standard rated.

For a non-eligible body, the education, and other goods and services provided, is standard rated. If private tuition is provided by a sole proprietor or partner, the tuition carried out is exempt. However tuition that employees or other helpers carry out is standard-rated.

Teaching of English as a foreign Language (TEFL) providers are different, and are not subject to the non-profit test. TEFL is an exempt supply for VAT purposes in the UK. All supplies of tuition in English as a foreign language (TEFL / EFL) by commercial providers are exempt under item 1 of Group 6 of Schedule 9 of the VAT Act 1994 (see VATEDU15000). The exemption applies because any supplier of EFL tuition is an ELIGIBLE BODY falling within the description of Note (1)(f) of Group 6.

But, if the courses are only partly TEFL, you will need to carry out an apportionment.