Online tutoring VAT

Hello, I’m looking to set up an education company providing online tutoring courses for overseas students, teachers will be based in UK and students are overseas. My understanding on (VATPOSS08500 - Where performed services: education services) is that because it is purely online sessions where teachers and students are physically in two different countries, VAT does not apply. Can you advise if this is correct or any other policies/manual need to be considered? Many thanks Ed.

Hi,

We would also advise you to refer to the public notice 741a sections 6 and 9, and section 14 where the supply is being made online as this provides further guidance.

Place of supply of educational services

Where the education has a place of supply that is outside the UK, this is outside the scope of UK VAT. When the place of supply is in the UK please then refer to notice 701/30 to determine whether it is a taxable or exempt supply of education being supplied:

Education and vocational training (VAT Notice 701/30)

Thank you.

Hi HMRC, I am resident in an EU country and I work as an online self-employed tutor. I will provide tuition services to the students of a UK education provider on law subjects. The tuition services are provided online out of my home country and I will invoice for this the education provider. I understand that this falls outside the scope of UK VAT and, even if it were subject to UK VAT, it would be exempt. Could you please advise? Many thanks in advance.

Hi gatheolo212,
The way in which the service is delivered will determine the Place of Supply of the service and the VAT liability.
Where an educational service involves the pupil interacting with a computer and there is minimal human involvement, the supply may be an electronically supplied service.
Please see the guidance at:
Place of supply of educational services
VAT rules for supplies of digital services to consumers
The place of supply of digital services
VAT rules for supplies of digital services to consumers
If, on the other hand the education, training, or a similar service is delivered by a person over the internet or an electronic network (such as a webinar),then this is not considered to be an electronically supplied service because an actual person is involved in the delivery.
This supply would then be Outside The Scope of UK VAT.
Please see the guidance at:
Place of supply of services (VAT Notice 741A) Section 12
Thank you