Explanatory note

This Order extends the scope of exemption from Value Added Tax for goods and services supplied as incidental to the provision of education, training or re-training by schools, universities and certain other bodies. This exemption is contained in item 4 of Group 6 of Schedule 6 to the Value Added Tax Act 1983.

At present, the exemption only applies where the goods and services are supplied by the educating body to its own students. From 1 October 1987, the exemption will also apply to goods and services supplied by one educating body to another for the direct use of the latter’s students.