Action required: VAT survey
We are asking centres delivering Pearson qualifications to complete our VAT survey, to ensure that VAT is not charged unnecessarily on our qualifications.
HMRC rules require Pearson UK to charge and account for VAT on sales of our qualifications unless we have evidence from our customers that they have “eligible body” status, in which case sales to those customers will qualify for exemption from VAT.
VAT exemption may also apply to commercial training providers, employers and private colleges that are in receipt of funding from one of the government agencies named on the reply slip below.
In accordance with these rules, we are contacting our customers to request written confirmation or otherwise of their “eligible body” or funding status, in order to ensure that VAT is properly charged.
Further to this, the Skills Funding Agency (SFA) has withdrawn funding of vocational training provided to learners aged 24 and over in respect of non-apprenticeship level 3 and above qualifications. It will also be withdrawing funding of vocational training provided for learners aged 19 and over in respect of non-apprenticeship qualifications that do not qualify under the new business rules. This will alter the VAT treatment of the supply of vocational training for these groups of learners as they no longer qualify for exemption. Therefore, commercial training providers will also need to confirm whether they are delivering fully funded qualifications or a mixture of funded and non-funded qualifications.
For centres delivering Pearson or Pearson EDI qualifications that are both funded (for example, by the SFA) which are exempt from VAT, and non-funded (for example, non-apprenticeship level 3 qualifications for learners aged 24 and over) which are subject to VAT at the standard rate, we may need to make some changes to how your centre is set up on our systems. We will be in touch to explain any changes and the implications once we have received and processed your reply.
If you have registered learners aged 24 and over on non-apprenticeship level 3 and above qualifications since 1 August 2013, as explained above these registrations should have been subject to VAT and we will be raising VAT only invoices on these registrations ensuring VAT has been properly charged.
Please complete the reply slip and return it by email to firstname.lastname@example.org or post to International House, Middlemarch Business Park, Siskin Parkway East, Coventry, CV3 4PE so that we can update our records accordingly.
Further information is available in the HM Revenue & Customs VAT Notice 701/30.
We would be grateful for your co-operation in completing and returning this VAT confirmation by 15 August 2014 to ensure that VAT is not charged unnecessarily.