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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I understand that examination services are exempt VAT if supplied

Customer Question

I understand that examination services are exempt VAT if supplied to certain not-for-profit organisations. Is this correct? If so, 1. How can you be sure that the organisation falls into this category (eg is it sufficient to see if they charge standard rate VAT on exam fees). Also, 2. which services are exempt, writing exam questions (I guess), but what about syllabus revisions, study manuals, practice materials?
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
Yes, for an eligible body the supplies of examination services are exempt.
Where an organisation is:
a charity, professional body or company that cannot and does not distribute any profit it makes and any profit that might arise from its supplies of education, research or vocational training is used solely for the continuation or improvement of such supplies it is likely to be an eligible body.
HMRC has a list:
Examination services include:

setting and marking examinations
setting educational or training standards
making assessments; and
other services provided with a view to ensuring that educational and training standards are maintained
The following are also examination services:
services connected with GCSE and GCE examinations and National Curriculum tests
National Vocational Qualification (NVQ) assessments
course accreditation services
validation
certification (including issuing duplicates)
registering candidates
The following are not examination services:
secretarial services
advertising services
promotional services
(Unless they are provided as part of a broad package of predominantly examination services.)
Those are exempt as long as the provider or the receiver is eligible.

I am not sure if you have seen all this information by HMRC, but you can see it here:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_CL_000117#P264_20052

Scroll down to Section 7 to start.

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