The Value Added Tax (Education) Order 2013

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends Item 1 of Group 6 (“Group 6”) of Schedule 9 (exemptions: education) to the Value Added Tax Act 1994 (“the Act”) to remove the supply of research by an eligible body to an eligible body from exemption from value added tax.

The Order applies with effect from 1st August 2013 but excludes supplies which are made pursuant to a contract entered into before 1st August 2013 if those supplies are made within the scope of that contract as it stood immediately before that date.

Group 6 describes supplies of goods and services in connection with education which are, pursuant to section 31 of the Act, exempt from value added tax. Item 1 of Group 6 exempts the provision of certain services by eligible bodies (which are defined by Note 1 to Group 6). Item 1(b) exempts the supply of research to another eligible body.

Article 1 provides for the title of the instrument, the commencement date of 1st August 2013 and the exclusion in respect of supplies of services made pursuant to a contract entered into prior to 1st August 2013 which are within the terms of that contract as it stood immediately before that date.

Article 2 deletes the operative part of item 1(b).

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.