VAT – Supplies related to education – Brockenhurst College

The CJEU has produced a satisfactory decision in the case of Brockenhurst College (C-699/15), which relates to the VAT treatment of certain ancillary supplies made by an education provider.

This arose from charges made to participants other than the students themselves, but which gave students the opportunity to practice, improve, and show-case their acquired skills.  The examples were charges for meals at the catering college, which had been prepared and served by students, and tickets to school plays and concerts performed by students.  The question was whether these were taxable, since the consumers were not students, and the consumers were not educated; or whether they were exempt, because the purpose of the purchase was to further the education of the students (and therefore was ‘closely related’ to an education supply).

Oddly, both the First Tier and Upper Tribunals had accepted that these supplies were exempt as ‘closely related’ supplies, but nonetheless the Court of Appeal referred the point to the CJEU for a determination.  This appeared to be a surprising decision relating to a point that the UK courts ought to be able to settle for themselves.  The CJEU nonetheless has endorsed both tribunal decisions, in effect, by agreeing that the charges are exempt.  That said, the Advocate General had caused a scare by opining that the supplies were taxable, but her opinion is now irrelevant and does not merit further analysis.

The Court looked at the meaning of ‘closely related’ and held that this was the same as ‘ancillary’.  Such a supply is regarded as not creating an end in itself, but only supporting the principal supply of education.  There was nothing in the legislation that required the ancillary supply to be made, physically, to the student.  It could be made to a third party as long as it was for the purpose of enhancing the student’s education, and did not generate extra financial resources, or fulfilled any separate function.  This principle was subject only to the question of whether it created unfair competition (‘fiscal neutrality’).

The Court reviewed the facts and noted that the customers were always associated with students or the college, and general admission of the public did not arise.  The catering, or theatrical performance, was only of a student standard, and the main objective was to challenge and stretch the students rather than to present the best show or meal to the consumer.  These priorities were far removed from the commercial equivalents which are intended to benefit only the consumer.  The Court was therefore satisfied that there was no unfair competition involved.

The Court also noted that the charges were at 80% of cost, which means that the activity was not intended to raise funds in and of itself.  The activity would only proceed if there were enough attendees, which was untypical of any catering supply or commercial performance supply.

The last question was whether these supplies enhanced the education supply to the student, such that their education would be poorer if these supplies were not made.  The Court did not hesitate to find that this was indeed the case, or that it was the supplier’s genuine view that it was.  There was only one motive or purpose in these supplies, and this was to educate the students.  The exempt treatment was therefore confirmed.

Given the risks of referring such basic principles to the CJEU, this was a happy outcome.

Graham Elliott is CTG’s Technical Adviser.

Comments

  1. Thomas says:

    Is there any reason that the same principle cannot apply to a non-fee paying school such as an academy? I appreciate that the supply of education is non-business (with the right of recovery) but how I am struggling to see how the catering etc. is not ‘closely linked’ and thus treated the same?

  2. Jackieken says:

    Да, действительно. И я с этим столкнулся. Можем пообщаться на эту тему.
    дану можливість надає одна фірма, що має в своєму архіві всіх підряд необхідних фахівців. 7. Останні штрихи. Декорування, https://capital360.com.ua/ ідеальна прибирання.

  3. RachelRib says:

    Я считаю, что Вы не правы. Пишите мне в PM.
    Маркетинг – это огромный комплекс стратегий, целей, целей и способов по созданию продукта, его продвижению и корпорации сбыта, а также установлению работы с посетителями сайта, работниками, https://marketer.ua/ снабженцами и компаньонами.

  4. ToniBag says:

    Корпусная и мягкая мебель Белая Церковь – это основной сегмент товара. транспортировка и установка. мы предлагаем привоз из Белой Церкви по всей краям Украины и сборку продукции по нашему мегаполису Мебель для гостиной купить и киевской области.

  5. HubertPhemo says:

    Reliable HVAC Repair Services https://serviceorangecounty.com stay comfortable year-round with our professional HVAC repair services. Our experienced team is dedicated to diagnosing and resolving heating, cooling, and ventilation issues quickly and effectively.

  6. JesusPaito says:

    Вам это не нравится?
    Глазурованный керамогранит и https://www.ceramtrade.ru/catalog/keramogranit/dlya-pola/ (она традиционно глазируется) эстетически почти одинаковы. Высокая водонепроницаемость керамогранита делает его удобным для влажных помещений, и среди них ванная, грязевая комната или прачечная.

  7. Kimcliem says:

    Я извиняюсь, но, по-моему, Вы не правы. Я уверен. Предлагаю это обсудить.
    имеет большое значение оберегаться образования на уровне корней и с этой целью https://sazhency-bori.ru/kustarniki-klematisa/ поливка канавки важно.

  8. Victoriauneks says:

    Вы не правы. Я уверен. Пишите мне в PM, обсудим.
    Кронштейны (или панель-кронштейны) – двусторонние консольные плоскостные конструкции, монтируемые на опорах городского освещения, https://nn.reklama-gravity.ru/vetluga/ опорах контактной сети либо на зданиях.

  9. Katejearl says:

    Абсолютно с Вами согласен. В этом что-то есть и мне кажется это отличная мысль. Полностью с Вами соглашусь.
    Методические консультации по разработке заданий и требований к проведению школьного и муниципального этапа всероссийской олимпиады школьников в https://fgosonline.ru/olimpiady/po-informatike/informatika-8-klass/ последнего года уч.

  10. Kristycrure says:

    Скажите мне, пожалуйста – где мне узнать больше об этом?
    на бирже имеется свой токен kcs, крауди биржа который выдает выгодные условия в качестве средств платежа торговых комиссий.

  11. Jerrisam says:

    Я считаю, что Вы не правы. Давайте обсудим. Пишите мне в PM, поговорим.
    мы вынуждены удовлетворять образовательные нужды наследников и молодежи в нестабильных или затронутых конфликтами районах, людей, которые обитают в общинах, находящихся в неблагоприятном социальном положении, жителей сельской местности, девочек и женщин, перемещенных лиц, https://mcoip.ru/olimpiada/po-russkomu-yazyku/6-klass/ учащихся с инвалидностью и других уязвимых категорий общества.

  12. Brianbic says:

    Что это слово означает?
    Также возможны разные сочетания профиля и материалов на запросу Шкафы купе угловые заказчика. 3. адресная доставка заказа по москве а еще регионы, работа по официальному договору с выдачей требующихся документов.

  13. Laurenurbar says:

    Случайно нашел сегодня этот форум и специально зарегистрировался, чтобы поучаствовать в обсуждении.
    понимание того, какое значение имеет outdoor-реклама, https://reklama-gravity.ru/services/billboard/reklamnye-shchity-v-novorossiiske/ особенно важно для своего бизнеса. Обычно конечной целью любого рекламодателя являются продажи в той или иной форме.

  14. Jodiepax says:

    Могу предложить зайти на сайт, с огромным количеством информации по интересующей Вас теме.
    Наслаждаетесь гармонией вкусов в услуги кейтеринга включен подбор блюд в https://catering.moscow/uslugi/10-people правильных сочетаниях. Деловые события: кофе-брейки, организация питания на семинарах, конгрессах и прочих мероприятиях.

  15. MonicaIMPOM says:

    Я думаю, что Вы не правы. Давайте обсудим. Пишите мне в PM, поговорим.
    стоимость зависит от площади квартиры, масштаба работ, https://kroshki.ucoz.ua/forum/50-1266-1 видов отделки. Дизайнерский ремонт или небольшое обновление напольных и настенных покрытий – совершенно различные по финансам мероприятия.

  16. MelanieRal says:

    просто супер!
    поэтому имеет смысл собрать такой презент, что может стать не только приятным, http://kyevlyn.ukrbb.net/viewtopic.php?f=12&t=13524 но также актуальным для садовода-огородника.

  17. Roelroase says:

    Это интересно. Скажите мне, пожалуйста – где я могу найти больше информации по этому вопросу?
    The https://eqtechnologies.ltd/the-best-5-examples-of-telegram-bot/ t.p. was founded with the name. Many brokers today offer commission-free transactions with various stocks and ETFs, therefore without fail consider similar technique in comparing costs.

  18. Antonioarind says:

    Я твёрдо уверен, что Вы не правы. Время покажет.
    Account types: make sure that platform can offer those types of accounts that you need, such as individual, joint accounts of the http://www.cascadecoil.com/2024/12/a-simple-plan-for-primexbts-trading-contests/ or retirement accounts (for example, ira).

  19. JustinMug says:

    Браво, эта весьма хорошая мысль придется как раз кстати
    it helps to increase accountability and transparency, and also ensure impeccable functionality of the https://getsomeins.com/5-critical-skills-to-do-how-to-change-leverage-loss-remarkably-well/, regardless of condition the company that created it.

  20. MeganRic says:

    such a topic may become especially useful for http://tpsraffles.co.uk/the-no-1-bcgame-registration-mistake-youre-making-and-5-ways-to-fix-it, and withdraw funds through another.

  21. ZoeHok says:

    Что это слово означает?
    ally and firstrade are lagging behind, since them not enough many famous https://htechprojetos.com.br/2024/12/03/primexbt-cfd-report-statistics-and-facts/, such as savings calculators for college also tools, what assist you calculate own capital investments in diverse varieties of assets.

  22. MatthewSyDay says:

    На Вашем месте я бы обратился за помощью в поисковики.
    at the same time with competent leadership most affordable for using https://sagestreet.in/the-ultimate-strategy-to-primexbt-download-app/ strategies can become powerful weapons, allowing both traders similarly investors to benefit from such crucial factors, such as time interval and leverage.

  23. Mikemef says:

    ха, прикольно!
    для их получения так важно сделать первоначальный взнос в размере минимум 100 грн а также в итоге будет начислен премию в размере 200% свит бонанза играть бесплатно от его суммы.

  24. Adrianbeils says:

    Мдя , Грустновато как-то !!!!!!!!!!!!!
    The schwab Training Center – from tips for some players to seminars for advanced – impresses with the depth and undoubtedly impeccable quality of the training. Why schwab is the best desktop portal for working stocks: Charles Schwab has been successful in acquiring the thinkorswim platform from TD Ameritrade, which is my beloved https://interspecweb.com/wp/2024/12/03/10-facts-everyone-should-know-about-primexbt-pl-trading-platform/ thanks to a large range of advanced equipment and technology charting.

  25. LeonaWaync says:

    what is concerns quality, then, of course, in our team only leading providers are working, in consequence of this the patient can ask for favorites online games in this business, https://sajero.co.ke/2024/10/16/the-hidden-mystery-behind-b-c-game/ with absolute presenters and high-quality transmission in form hd.

  26. Evamip says:

    Какой хороший вопрос
    answers to data frequently asked questions reflect position only of DMO employees, http://robionics.com/how-to-become-better-with-primexbt-trading-platform-in-10-minutes/ and not always the jury or some other department.

  27. Tanmaykaf says:

    intex manufactures a selection of 16 unique https://thienanrestaurant.com/10-step-checklist-for-bcgame-online/ with confirmed integrity. The absence of KYC and encumbrances on correct withdrawal finances is also are one of the additional advantages for users, since them do not should worry about withdrawal limits.

  28. AndrewSterm says:

    норм фильм?
    Trading with etoro by monitoring and/or copying or replicating transactions of other traders is associated with high degree of risks, the https://www.greaterinvestmentsre.com/2024/12/03/5-ways-start-trading-on-primexbt-will-help-you-get-more-business/ even during tracking and/or copying or replicating trades of the best traders.

  29. Ashleyfub says:

    Как вариант, да
    ?????????? ??? ??? ??????? ???? 72 ????? ???? ???????/ ????? ???????? ???? ???? ?????????? ??? ????? 5 ?? ????? ???? | ????} ?? ????? marvelbet ???? ???? ????????????? ????? ?????? ????????. ????????? ?????? ???? ???? ???????? ??? ??? ????????? ???????? ?????? ????

Join the discussion

Your email address will not be published. Required fields are marked *