Fully online courses, with non-matriculated learners, are classified as ‘digital services’ and their income is subject to VAT (currently 20%). This levy applies to the fees charged.
Do I have to charge VAT on services to overseas customers?
If you’re supplying services to non-business customers outside the UK, you may not need to pay UK VAT. These are mainly intangible services that include advertising, intellectual property rights, legal services and accountancy.
Is VAT payable on overseas services?
If the place of supply of your services is outside the UK you should not charge UK VAT but, as you may need to account for the local tax, you’ll need to consider the tax rules of the country into which you are making your supply.
Do you charge VAT on webinars?
*Live webinars may be subject to standard VAT rules for educational materials, rather than the rules for digital products.
Do you charge VAT on euro invoices?
You can invoice in any currency for the goods and services that you supply. If UK VAT is due on the transaction your invoices must also show the following in sterling: the total net value of goods and services at each VAT rate.
Can a distance learning supply be covered by VAT?
Thus a supply that consists purely of distance learning elements will not be covered by this rule. For these supplies you will need to consider whether there is a supply of services falling under Schedule 5 of the VAT Act 1994, or a supply of goods, in which case the normal place of supply rules for goods will apply.
How does VAT apply to education and vocational training?
Education and vocational training (VAT Notice 701/30) Find out how VAT applies to education, research, vocational training, examination services and goods and services connected with these activites.
Is there VAT on services supplied to overseas customers?
VAT on services supplied to overseas customers. If the customer is overseas then the VAT rate on the sales invoice depends on the place of supply. B2B: Customer is a business. The place of supply will usually be the customer’s location. If the customer is within the EU then the invoice will have 0% VAT but will be subject to the reverse charge.
Is the supply of Education exempt from VAT?
Any goods or services, that are closely associated with the supply of education are exempt if the supply of education by an eligible body is exempt. For those goods or services, there is no requirement for them to be non-profit making: Normal VAT treatment will be applied to goods or services that are not closely related to the supply of education.
