§ Mr. Gregoryasked the Chancellor of the Exchequer if he will state the value added tax position in each European Community state relating to foreign language teaching.
§ Mr. BrookeUnder the EC sixth VAT directive, most education is exempt from VAT when provided by bodies governed by public law or by bodies with similar objects; in the latter case, the exemption may be subject to a condition that they do not systematically aim to make a profit.
Present information about the practices of member states is as follows:
- Belgium: In general supervised teaching is exempt from VAT.
- France: Teaching by language schools governed by the relevant public law is exempt.
- Ireland: Teaching by an educational establishment—including profit making organisations—is exempt from VAT.
- Portugal: Language schools approved by the Minister of Education are exempt from VAT.
- Denmark, Italy, Netherlands: Language teaching provided by non-profit making establishments is exempt from VAT; otherwise it is liable to VAT at the standard rate.
- Information is not currently available about Germany, Greece, Luxembourg or Spain.
In the United Kingdom, language teaching provided by a non-profit making establishment is exempt from VAT; otherwise it is liable to VAT at the standard rate.
§ Mr. Fisherasked the Chancellor of the Exchequer what is his estimate of the net value added tax gains from the sale of tickets for arts events.
§ Mr. BrookeIt is estimated that the revenue from VAT charged on admissions to theatres, concerts and similar live entertainment was of the order of £40 million in 1985–86.
§ Mr. Fisherasked the Chancellor of the Exchequer what is his estimate of the net value added tax gained from the expenditure of foreign tourists in the United Kingdom on the arts.
§ Mr. BrookeI regret that information on which to base an estimate is not available.
§ Mr. Ottawayasked the Chancellor of the Exchequer by how much value added tax receipts have risen in the period 1 October 1986 to 31 January 1987; what was the comparable rise in the same period of 1985–86; and how much of the increase is attributable to penalties for the late payment of value added tax.
§ Mr. Brooke[pursuant to his reply, 24 February 1987]: The information on value addled tax receipts is as follows:
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Period Net receipts Change £ million £ million Per cent. October 1984—January 1985 6,959 — — October 1985—January 1986 6,893 -66 -0.9 October 1986—January 1987 17,435 +542 +7.9 1Provisional. Receipts in the period October 1984 to January 1985 include an estimated £1 billion attributable to the changes in arrangements for collecting VAT on imports.
In so far as the effects of the introduction of penalties for the late payment of tax are concerned, I regret that I cannot at this time add to the reply my right hon. Friend the Chancellor of the Exchequer gave to the right hon. Member for Ashton-under-Lyne (Mr. Sheldon) on 18 December at column 668–69.
§ Mrs. Ann Wintertonasked the Chancellor of the Exchequer what has been the total revenue from value added tax on fuel sales in each of the last 10 years for which figures are available; and what was the percentage change in such revenues on the preceding year in each case.
§ Mr. Brooke[pursuant to his reply, 24 February 1987]: Businesses registered for value added tax are not required to make returns of the tax charged on particular supplies of goods and services, and information of this kind is therefore not directly available. The figures are based on estimates of consumers' expenditure.
Year £ Million Percentage change 1976–77 325 — 1977–78 290 -10.8 1978–79 280 -3.4 1979–80 425 51.8 1980–81 590 38.8 1981–82 725 22.9 1982–83 805 11.0 1983–84 880 9.3 1984–85 950 8.0 1985–86 1,020 7.4
§ Mrs. Ann Wintertonasked the Chancellor of the Exchequer what has been the total revenue from value added tax on vehicle service and repair in each of the last 10 years for which figures are available; and what was the percentage change in such revenues on the preceding year in each case.
§ Mr. Brooke[pursuant to his reply, 24 February 1987]: Businesses registered for value added tax are not required to make returns of the tax charged on particular supplies of goods and services, and information of this kind is therefore not directly available. The figures are based on estimates of consumers' expenditure.
Year £ Million Percentage change 1976–77 50 — 1977–78 60 20.0
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Amounts spent 1985–86 Over £1,500,000 ICL Between £50,000 and £150,000 Apollo Computers Limited Comart Computers Limited IBM UK Limited Systime Limited Between £25,000 and £50,000 British Telecom
Year £ Million Percentage change 1978–79 70 16.7 1979–80 110 57.1 1980–81 165 50.0 1981–82 185 12.1 1982–83 190 2.7 1983–84 220 15.8 1984–85 220 0.0 1985–86 225 2.3
§ Mrs. Ann Wintertonasked the Chancellor of the Exchequer what has been the total revenue from value added tax upon motor vehicle sales in each of the last 10 years for which figures are available; and what was the percentage change in such revenues in the preceding year in each case.
§ Mr. Brooke[pursuant to his reply, 24 February 1987]: Businesses registered for value added tax are not required to make returns of the tax charged on particular supplies of goods and services, and information of this kind is therefore not directly available. The figures are based on estimates of consumers' expenditure on new and used cars and motor cycles, and of business expenditure on cars (the VAT on which is non-deductible).
Year £ million Percentage change 1976–77 255 — 1977–78 315 23.5 1978–79 455 44.4 1979–80 805 76.9 1980–81 1,005 24.8 1981–82 1,035 3.0 1982–83 1,180 14.0 1983–84 1,335 13.1 1984–85 1,410 5.6 1985–86 1,650 17.0