VATEDU56000 - Group 6 Item 5 Vocational training: when is VAT is chargeable on vocational training under a Government-approved scheme?

Training paid for from one of the sources listed in VATEDU55500 is exempt. However

• If the trainee or an employer pays part of the cost of the training from their own resources, then that part of the supply is not covered by the special exemption and the training provider should apportion between exempt and standard-rated elements, unless it is an eligible body (see VATEDU39000).
• If the training provider contracts with a further education college, then it must find out what proportion of the payment by the college derives from funds listed in VATEDU55500 and the training provider should charge VAT on the remaining proportion, unless it is an eligible body (see VATEDU39000.
• If the contract allows for a separate supply of management services, then the management services are not covered by the exemption and the training provider should charge VAT.

Training credit vouchers

If a trainee hands the training provider a training credit voucher to redeem with a local office of the bodies listed in VATEDU55500 that administer and fund these vocational training schemes, the income received from it is part of the consideration for the exempt supply by the training provider.