§ Mr. O'Halloranasked the Chancellor of the Exchequer if he will consider zero rating for the purposes of value added tax the supply of language courses to foreign students in the United Kingdom; and if he will make a statement.
§ Mr. Bruce-GardyneNo. Supplies of education are either exempt from VAT under the provisions of group 6 of schedule 5 to the Finance Act 1972 or are standard rated. A special zero rate relief for language courses supplied to foreign students could not be justified.
§ Mr. O'Halloranasked the Chancellor of the Exchequer which member States of the European Economic Community charge value added tax on language courses for foreign students; at what rates; and for what types of courses the tax is charged.
§ Mr. Bruce-GardyneThe available information is as follows:
Belgium *17 per cent. or Exempt Denmark Exempt France 18.6 per cent. Germany *13 per cent. or Exempt Ireland Exempt Italy Exempt Luxembourg *10 per cent. or Exempt Netherlands *18 per cent. or Exempt United Kingdom †15 per cent. or Exempt Greece has not yet introduced VAT.
* Exempt if supplied by a body governed by public law.
† Exempt if provided by universities or on a non profit-making basis.