Learners comparing language courses often see prices quoted “plus VAT” by one provider and without VAT by another. The difference is not random. VAT on education depends on who provides the course, what language is taught and how the teacher operates. HM Revenue and Customs (HMRC) sets out the rules in VAT Notice 701/30, “Education and vocational training”, last updated on 27 January 2025. This article summarises what the Notice says about language tuition in the UK. It is general information for learners and small providers, not tax advice.
The basic rule: eligible bodies are exempt
The Notice says that if a provider is an “eligible body” other than a private school, its supplies of education and vocational training are exempt from VAT. It lists eligible bodies, and the list includes schools, sixth form, tertiary and further education colleges, universities, local authorities, certain non-profit organisations that meet conditions, and a commercial provider of tuition in English as a foreign language, to which special rules apply. From 1 January 2025 a private school’s education and vocational training are taxable at the standard rate, which GOV.UK’s VAT rates page confirms is 20% for most goods and services. For learners, this means the same evening class can be treated differently depending on whether it is run by a college or by a company.
English as a foreign language is treated specially
The Notice contains a dedicated section on English as a foreign language (EFL). Where a commercial body supplies EFL as well as other education, it should treat as exempt the EFL supplies and closely related supplies that meet the Notice’s conditions. Tuition is described as including all elements integral to the course, held out for sale as such, and intended to promote fluency in English, and the Notice gives sports and games, recreational activities, sightseeing and social activities as examples. Crucially, the Notice says the exemption does not extend to other educational or training courses, such as tuition in a language other than English, or training people to teach English as a foreign language.
A commercial provider offering a modular course with some EFL plus other subjects should apportion the supply by any fair and reasonable method, though if that is inconvenient or impractical the whole supply may be standard-rated.
Commercial providers of other languages
The Notice says that commercial providers of education other than EFL, meaning those operating with a view to making and distributing profits, are unlikely to be eligible bodies. It gives examples such as tutorial colleges and correspondence colleges. Where a provider is not an eligible body, the Notice directs it to consider whether the services count as private tuition or examination services. In practice, a company selling French or Spanish classes for profit that does not fit those categories is unlikely to benefit from the education exemption on the terms in the Notice. Whether a particular business must charge VAT also depends on VAT registration. GOV.UK says a business must register if its total taxable turnover for the last 12 months goes over £90,000 (the VAT threshold), and that a business need not register if it only sells VAT exempt or out-of-scope goods and services. A small provider below the threshold is therefore not obliged to charge VAT, though it may choose to register voluntarily.
Private tuition by an individual teacher
The Notice has a separate section on private tuition supplied by an individual teacher working in a personal capacity. It says a table helps decide whether the tuition is exempt, and that the exemption can apply to a sole proprietor or a member of a partnership where the subject is one taught regularly in a number of schools or universities. If a teacher takes on other teachers to assist, the Notice says either the supplies of tuition should be apportioned between exempt and taxable elements using any fair and reasonable method, or all supplies of tuition should be treated as taxable regardless of who delivers it. Goods and services sold with private tuition that are not an integral part of the supply of tuition must be treated as standard-rated unless relief is available elsewhere.
A learner choosing an independent tutor for French or German therefore may see a price with no VAT, while a language academy employing several tutors may not be able to treat all of its supplies the same way. Which applies to a given business is for that business and HMRC to determine.
Exams are treated separately
The Notice treats examination services, including setting and marking examinations, certification and registering candidates, as their own category: supplies by an eligible body are exempt, and supplies by a non-eligible body are exempt if the recipient is an eligible body or an individual. For learners paying for a language qualification, see the site’s guides to Ofqual-regulated language qualifications and to IELTS, TOEFL and Cambridge English.
Checking a quote
- Ask whether the price includes VAT, and whether the provider is an eligible body such as a college or university.
- For a commercial language school, ask whether the course is EFL, since only EFL tuition and closely related supplies get the special treatment.
- For extras such as materials or trips bundled with a course, ask how they are treated, because the Notice says separate supplies not integral to the tuition may be standard-rated.
- Compare on the full price payable, as covered in the site’s guide to choosing a language course.
Common questions
Is all language tuition exempt from VAT? No. The Notice says the EFL exemption does not extend to tuition in a language other than English.
What is the standard rate of VAT? The Notice describes the standard rate applying to private school education from 1 January 2025 as 20%.
The bottom line
In the UK, whether VAT is added to a language course depends on the provider. Eligible bodies such as colleges and universities are exempt, commercial EFL providers get an exemption limited to English tuition and related supplies, commercial providers of other languages are unlikely to be eligible bodies, and independent teachers may qualify for the private tuition exemption if the conditions are met. The current rules and thresholds are on GOV.UK, and providers should check them or take advice. This is general information, not tax advice.
Sources
- HM Revenue & Customs, GOV.UK, “Education and vocational training (VAT Notice 701/30)”
- GOV.UK, “Register for VAT”
- GOV.UK, “VAT rates”