TC09497 - [2025] UKFTT 00460 (TC)

We considered what meaning should be given to the expression “examination services” in Note 4. We understood the ordinary meaning of examination to be a formal test to assess knowledge or ability.

Our attention was taken by Mr Khokhar to VATEDU45100 in HMRC’s internal manuals which includes the following words:

“Group 6 Item 3 Examination services including school inspections: what are examination services?

This item covers a wide range of activities and includes those carried out at the instigation of an educational institution itself. The term examination services includes the following supplies in the education and training sector:

(1)

GCSE examinations etc;

(2)

National Vocational Qualification (NVQ) assessments;

(3)

accreditation;

(4)

validation;

(5)

certification;

(6)

assessment and

(7)

registration services.

Although item 3 of Group 6 of Schedule 9 of the VAT Act 1994 refers to examination services, it is clear from the legal definition contained in Note 4 to the Group that the exemption is intended to apply to a far broader area of services than examinations alone.

This deliberately reflects the trend away from examinations towards continual assessment and monitoring of workplace performance, personal portfolios, accreditation and so on as the means of recording attainments and achievements and also of awarding qualifications.”

Our conclusion was that this was not particularly helpful to GM’s case. It indicates that HMRC consider examination services is wider than examinations, but it does not state or imply that a product that uses diagnostic tests to teach maths is an examination service.

We considered that the words examination services in item 3 should be given their ordinary and natural meaning and that that meaning requires some element of a formal test to assess knowledge or ability. Our conclusion was that “examination services” was a term wider than formal public exams, but not so wide as to include something that was essentially a teaching product, or an integral part of a teaching product.