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Regulation 90 of the VAT Regulations 1995 (see VATTOS2355) provides special time of supply rules for what are generally referred to as continuous supplies of services. More specifically it...
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- Vattos9160
4 days ago · Currently, private schools are eligible for some tax breaks and they don't have to charge VAT on tuition or boarding fees. These tax breaks are being removed from 1 January 2025, and VAT will apply to to all payments that relate to the January 2025 term onwards, unless you made the payment before 29 July 2024, in which case it won’t incur the 20% VAT.
In most cases the basic tax point for a supply of goods occurs on their removal. This normally means the time of delivery by the supplier or collection by the buyer.
Jun 10, 2016 · The time at which a supply of goods or services is deemed to take place is called the tax point. VAT must normally be accounted for in the VAT period in which the tax point occurs and at the rate of VAT in force at that time.
- Why Is VAT Not Currently Payable?
- How Soon Could VAT Be imposed?
- How Would A VAT Charge Affect The Level of School Fees?
- Would VAT Need to Be Charged on The Full Amount of The School Fees?
- How Would Bursaries and Discounted Fee Arrangements Be Affected?
- Would VAT Be Charged to Parents Who Are Based Overseas?
- What About Fees That Are Paid in Advance?
- Are There Steps Schools Should Take in Light of The Proposed Changes?
Under VAT law in the UK, the provision of education by an “eligible body” (which includes a registered independent school) is an “exempt” supply for VAT purposes. Goods and services that are closely related to education are also exempt from VAT eg catering, transport, school trips and boarding accommodation. In addition, there is a separate VAT exe...
Theoretically, a new Labour government could pass a law at a time of its own choosing to change the definition of “eligible body” to omit independent schools. This might be part of a new government’s budget, or it could be introduced independently of that. As the matter would relate to taxation (a so-called “money bill”) the House of Commons would ...
Like any other business which makes VAT taxable supplies, if a school were obliged to charge VAT on the supplies it makes, it would in turn be able to set-off the amount of VAT which the school has itself paid on goods and services supplied to it and which have been incurred for the purposes of the business (for example utility bills, repairs and m...
There has been some discussion among tax professionals as to whether the aggregated “supplies” made by schools could be separated out such that the new VAT charge would apply only to certain elements. For example, the supply of after-school care by a school can qualify as “welfare services”, which are exempt under existing VAT law. Similarly, accom...
To the extent a bursary is an agreement to provide education free of charge, no VAT can attach to that supply because nothing is “paid” in return for the service. Similarly with discounted fee arrangements, VAT would only be chargeable on the discounted amount paid. (This assumes the school in effect bears the cost of any discounted fees. Bursaries...
Yes. The general rule for supplies of services which are made by a business to a consumer is that the place of supply is where the supplier belongs, irrespective of the location of their customer.
The VAT “time of supply” rules are key to understanding this issue. In most cases, VAT is due on a supply of services on the date the services are performed. The date can be brought forward if an invoice is issued or payment is received in advance, provided that at the time of making the payment or issuing the invoice, the services being paid for a...
The following are some immediate measures that schools could adopt: 1. Review and, if necessary, amend their terms & conditions/parent contracts to ensure that the school has the contractual right to charge VAT in addition to the stated fees, should the law change. 2. Undertake a preliminary accounting analysis to estimate what their net exposure t...
- Isaacson
This guidance note provides information about basic tax points. Depending on the order of events in relation to when a supply is made, an invoice is issued and the supply is paid for, a supply may have a basic tax point and one or more actual tax points. Actual tax points can override basic tax points. For information about actual tax points ...
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Jan 29, 2024 · The time of supply rules determine when a supply of goods or services takes place for VAT purposes. If a payment is not consideration for a supply of goods or services the time of supply rules do not need to be considered in relation to it.
