HMRC has published Revenue and Customs Brief 9 (2026) following the Court of Appeal decision in the St Patricks International College case, which involved three alternative providers of higher education. Revenue and Customs Brief 9 (2026): VAT liability of supplies of education by alternative providers of higher and further education – GOV.UK
Where a provider charges for education in the course of business, the supply is subject to VAT at the standard rate unless the VAT exemption applies. This includes education provided by eligible bodies, such as universities, further education corporations, schools and certain public or non-profit-making education providers.
The Court of Appeal found that the higher education supplies considered in the case were exempt, even though the providers were not eligible bodies. The Court considered whether the education was similar to that supplied by an eligible body from the perspective of the typical student.
What does Revenue and Customs Brief 9 (2026) say?
HMRC has not changed its policy. It maintains that education supplied by a provider that is not an eligible body is subject to VAT at the standard rate.
HMRC has permission to appeal the Court of Appeal decision to the Supreme Court. In the meantime, alternative providers that consider themselves to be in the same position as the providers in the St Patricks case can submit claims to HMRC for VAT previously paid. HMRC will consider each claim on its facts.
A claim will need to take account of:
- Input tax previously recovered, as VAT relating to costs for making exempt supplies will not be recoverable (unless within the de minimis limits)
- Unjust enrichment, where customers bore the VAT cost, but the provider would retain the refund
- The four-year time limit, calculated from the end of the VAT period in which the output VAT was overdeclared
What should providers do now?
The decision does not mean that all education supplied by commercial providers is exempt. Providers of higher education should consider how closely their courses compare with the supplies examined by the Court.
Providers should not change the VAT treatment of current supplies solely because of the Court of Appeal decision. However, those with comparable supplies should review their position now and consider submitting a protective repayment claim before any VAT periods fall outside the four-year time limit.
How Xeinadin can help
The Xeinadin VAT team can:
- assess whether education supplies fall within the scope of the decision
- identify periods within the four-year claim window
- calculate the net VAT repayment
- prepare and submit a protective repayment claim to HMRC
We can also advise on the VAT treatment of current supplies while the Supreme Court appeal is pending.
