HMRC have published 'Revenue & Customs Brief 9 (2026): VAT liability of supplies of education by alternative providers of higher and further education’. It provides an update on HMRC’s position on the VAT treatment of supplies of education and closely related services provided by alternative providers.
The Brief sets out the implications of the Court of Appeal (CoA) decision in St Patrick’s International College Ltd & Ors v HMRC [2026] EWCA Civ 852.
The CoA overruled the previous decisions of the First Tier and Upper Tribunals and found in favour of St Patrick’s International College. It concluded that the perspective of the typical consumer is relevant when assessing fiscal neutrality and that some supplies made by organisations that were not eligible bodies, such as St Patrick’s International College, were exempt from the standard rate of VAT.
HMRC has received permission to appeal the CoA’s decision to the Supreme Court.
Claims
The Brief confirms that alternative providers who believe they are in the same position as St Patrick’s International College can submit a claim for a refund of VAT.
- Any claim remains subject to the normal statutory requirements and time limits.
HMRC will protect its position to secure tax revenues, pending the outcome of the appeal to the Supreme Court.
Useful guides on this topic
Reclaims and unjust enrichment
When can VAT reclaims be made? What are the time limits? What is unjust enrichment? Why might unjust enrichment prevent HMRC from making VAT repayments?
Partial exemption & input VAT
How do you calculate the amount of input tax you can recover under the VAT partial exemption rules? What are the de minimis rules?
Correcting VAT errors
What are the VAT error correction time limits? Can you correct errors through the VAT return? Do you have to notify HMRC?
Education and VAT
What rate of VAT applies to education? What sort of services are classed as education? What do you do if you have multiple supplies including education? What cases are there on VAT and education?
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