VAT on School Fees

RoddersTrotters

My child has been offered a place at a prestigious School for 6th Form in 2025. She is applying for a full scholarship and Bursary. If she is awarded this by the school will we have to pay 20% VAT as the school is using their own money to fund it. Or will we have to pay it? I don’t want to get into the political argument of Private schools v State Schools just an answer regarding who pays if needed would be great.

elsien

Updated resource here which covers bursaries.   https://www.saffery.com/insights/articles/vat-on-school-fees-a-guide/#:~:text=Where%20school%20funded%20bursaries%20cover,due%20on%20the%20fee%20paid.

daveyjp

You only pay VAT on a bill you are responsible for paying,  if someone esle is paying they pick up the VAT.  If they expect part payment you will pay VAT on the amount you pay.

With school bursaries VAT is likely to be more complicated due to potential impacts of possible charity status, gift aid on bursary contributions etc etc.