§ Dr. VisTo ask the Chancellor of the Exchequer if all state schools are registered for VAT, and what the differences are between VAT treatment for(a) local education authority schools, (b) grant-maintained schools and (c) private educational facilities. [12776]
§ Dawn PrimaroloLocal Education Authority schools are covered by the VAT registration of their parent local authority. Other schools may be registered for VAT in respect of non-education activities. Education itself is exempt from VAT, so no school has to charge VAT on its provision of education.
There are some differences between different types of school in respect of recovery of VAT incurred on their expenditure. Local Education Authority schools can recover all VAT under the special provisions made for 781W local authorities; other schools cannot, though grant-maintained schools are compensated for this by central Government grant, and independent schools can take non-recoverable VAT into account in setting the level of their fees.