The VAT Tribunal has decided that private dance classes are not within the VAT education exemption

A recent First Tier Tribunal (FTT) found that dance classes provided as tuition were outside the VAT exemption because the subjects (line dancing, ballet, Latin, ballroom) were not those ordinarily (or commonly) taught in schools or universities. The FTT found that these classes were very specialised and significantly different from generalised dance within the school National Curriculum.

Two conditions apply to VAT exempt tuition:

• The person delivering the tuition must be either a partner or a sole proprietor, and
• The subject must be regularly taught in schools or universities. For example, top-up tuition for school subjects such as Maths or a language is acceptable

Other recent Tribunals have ruled that kickboxing, dog grooming, driving lessons, yoga, and pilates are not within the tuition exemption.

There are other ways to qualify for the VAT education exemption, such as education delivered by a state school, college, university, or a “not for profit” body, termed an eligible body by HMRC.

As the FTT decision does not create an automatic precedent, it is possible that the dance schools will appeal to the Upper Tribunal.

If you wish to discuss this in further detail, please get in touch with one of our Indirect Tax Services team members here.