News - tax cases

Private service

A company employed teachers to teach students. Customs decided that VAT was chargeable on that tuition. The company's appeal that the tuition was an exempt supply was allowed by the VAT tribunal so Customs appealed.
The company said that the UK legislation did not reflect accurately Article 13A(1)(j) of the Sixth Directive which states that tuition given privately by teachers covering school or university education was an exempt supply. Customs claimed that tuition given privately implied that a teacher was acting on his own behalf in a private capacity rather than as employee of an organisation which was supplying the service. This was supported by Article 13A(1)(i) which dealt with tuition provided by public sector bodies and private organisations while Article 13A(1)(j) dealt with teachers acting in a private capacity.
The Court of Session agreed with Customs' interpretation of the structure of Article...