In Generic Maths Ltd v HMRC [2025] TC09497, the First Tier Tribunal (FTT) found that the supply of assessments included in an online maths learning product, which tested a student’s maths ability, were standard-rated for VAT.
Generic Maths Ltd (GM) provided an online maths learning tool called ‘ConquerMaths’. The tool contained a small number of tutorial videos but predominantly contained diagnostic tests to ascertain a student’s maths ability.
- HMRC raised a £80,118 VAT assessment on the basis that the supply of ConquerMaths was Standard-rated.
- GM Appealed to the First Tier Tribunal (FTT), arguing that the supply of ConquerMaths was an exempt supply of Examination services.
Group 6 of Schedule 9 to VATA 1994 provides a VAT exemption for:
- Item 1: the provision by an eligible body of education or vocational training.
- Item 2: the supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer.
- Item 3: the provision of examination services:
- By or to an eligible body.
- To a person receiving education or vocational training which is exempt under items 1, 2, 5 or 5A; or provided otherwise than in the course or furtherance of a business.
Note 4 of Group 6 states that 'examination services' include the setting and marking of examinations, the setting of educational or training standards, the making of assessments and other services provided with a view to ensuring educational and training standards are maintained.
The FTT found that:
- A typical consumer would perceive ConquerMaths as a teaching product or revision aid, designed to improve the understanding of maths, rather than a form of examination.
- The definition contained in Note 4 to Group 6 makes it clear that the exemption is intended to apply to a far broader area of services than examinations alone, but it does not state or imply that a product that uses diagnostic tests to teach maths is an examination service.
- The definition in Note 4 is not so wide as to encompass 'assessments' that are simply part of a learning/teaching/revision process.
- ConquerMaths could not be shoehorned into Item 3 as an examination service merely because it involves diagnostic assessments.
The supply was not an examination service within the meaning of Item 3. The appeal was dismissed.
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