TC09497 - [2025] UKFTT 00460 (TC)

Under s4 VATA, VAT is to be charged on the supply of goods or services made in the United Kingdom by a taxable person in the course or furtherance of a business. Generally supplies are standard rated, but certain supplies are exempt by reason of s31 VATA. Schedule 9 VATA sets out groups of exempt supplies of goods and services. Relevant to this appeal is Group 6 – Education which states:

Note 4 of Group 6 states:

“Examination services” include the setting and marking of examinations, the setting of educational or training standards, the making of assessments and other services provided with a view to ensuring educational and training standards are maintained.

Since GM is a taxable person, it follows that, unless GM’s supplies are “examination services” within the meaning of Item 3, the supplies will be standard rated. Even if the supplies are examination services, they will only be exempt if supplied to a person within (3)(a) or (b).

Section 73(1) VATA provides:

“Where a person has failed to make any returns required under this Act (or under any provision repealed by this Act) or to keep any documents and afford the facilities necessary to verify such returns or where it appears to the Commissioners that such returns are incomplete or incorrect, they may assess the amount of VAT due […] to the best of their judgment and notify it to [the person].”

Section 77 VATA 1994 provides that a section 73 assessment must not be made more than four years after the end of the prescribed accounting period.