Medical education

Robert Gordon University provide nursing and midwifery training leading to a diploma and registration with the UK Central Council for Nursing Midwifery and Health Visiting. It was agreed that this was an exempt supply for VAT under VATA 1994 Sch 9 group 6 item 1.

The university assigned its obligations to provide the training to Univation Ltd by means of a service agreement. Under this agreement the university would supply staff and administration services to the company. Univation was not an eligible body but was a wholly owned subsidiary of the university.

The issue was whether the supply of services under the services agreement constituted the provision of education or training by the university. HMRC argued that the whole supply of services under the service agreement was the provision of education. The university said that it supplied resources and facilities which Univation applied in the provision of...