In RM Education plc v HM Revenue & Customs [2009] UKVAT V20911 (decision published 9 January 2009), the VAT Tribunal confirmed that exam marking software & associated services do not qualify for the VAT exemption for education.
RM Education plc provide e-marking services to the University of Cambridge Local Examination Syndicate as part of a process intended to improve public confidence in the schools exam system. RM contended that the services were integral to the exam process and were therefore with the exemption as “other services provided with a view to ensuring educational and training standards were maintained” (Note 4 to the exemption).
The case will be disappointing for exam providers who, in common with other suppliers of exempt services, will be keen to obtain VAT exemption for as many purchases as possible, and further confirms that the Tribunal will take a strict interpretation of law – using primary EU law in the case of VAT.