Provision of distance learning courses is zero rated for VAT purposes in the UK

29 December 2015

In a recent court ruling, the UK’s First Tier Tribunal found that the provision of distance learning courses is zero rated for VAT purposes in the UK. These types of courses involve sending learning materials direct to students for them to undertake their studies under their own initiative. HMRC had argued that these services were educational services which meant they incurred the standard rate of VAT at 20%; however the Tribunal ruled that that the printed learning materials were the main part of the supply and these incur the zero rate of VAT.