- No major changes to VAT were expected in the budget and the focus was on Private School VAT adjustments
- The VAT legislation still has complexities, especially with tax points and changes in liability from exempt to taxable education supplies
- Issues identified include unclear liability on catering in Private Schools and unchanged exemptions like land exemption
- No VAT relief for S.342 special schools in the new draft, except for a specific anti-forestalling rule exception
- Private Schools may see benefits from the capital goods scheme allowing recovery of VAT on capital expenditures over the last 10 years
- Public schools should consider broader VAT discussions beyond just income, exploring opportunities for VAT recovery before potential registration changes after 1 January 2024
Source: thevatteam.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
