United Kingdom Tax Tribunal Clarifies VAT Exemption for Examination Services

The United Kingdom First-Tier Tax Tribunal April 24 issued a judgment in Case No. TC09497, clarifying the VAT exemption for supplies of examination services. The taxpayer, a VAT-registered online tutoring company, claimed a VAT exemption for its online teaching products that included diagnostic assessments. The Tax Agency denied the exemption on the grounds that the taxpayer’s product didn’t meet the criteria for an examination service under the VAT Act. On appeal, the Tax Tribunal found that: 1) the VAT exemption applies to examination services supplied in the education and training sector, such as accreditation, certification, and registration services; 2) the ...