Posted by Revenue eBrief No. 186/20
VAT Treatment of Education and Vocational Training
The guidance in the Tax and Duty Manual VAT Treatment of Education and Vocational Training has been updated to include additional information under paragraph 4.4 (Provision of education or training services by a provider in receipt of Exchequer funds) and a new paragraph in relation to the place of supply rules for lecturing services received from abroad (paragraph 9.1).
Extract:
4.4. Provision of education or training services by a provider in receipt of Exchequer funds
The provision of children’s or young people’s education, school or university education and vocational training or retraining by a body who receives money from a body specified in regulations for the purpose of delivering that education or training is exempt from VAT. Such bodies include an ETB, SOLAS or a Local Enterprise Office.
In certain situations, government departments fund training networks (managed by state agencies) which organise training for network members. The networks are not involved in the provision of training services. The government funding (together with a contribution from the network members) is used to pay for training services delivered by independent training providers. The funding and the contributions are considered directly linked to the supply of the training services. Where those services meet the normal requirements to qualify as educational or vocational training, they are exempt from VAT.
9.1. Lecturing services received from abroad
Irish based training providers should be aware that if the place of supply for lecturing services received from abroad is the State (in accordance with B2B rules), these services are liable to VAT, if they do not satisfy the conditions as set out in paragraph 8.4 above as a supply of services “closely related” to education. The Irish-based training provider is liable to account for the VAT on the reverse charge basis in relation to such taxable services.
Bookkeepers Ireland 