Conferences - Selling

Conferences

1.      Conferences organised and run by the University

Supplies of education, for a fee, by an eligible body are exempt from VAT.

All three items in bold above need to be present to claim the exemption [1]

(i)               Education

For something to be considered education there has to be instruction or study[2]present and therefore included are:-

• Lectures
• Educational seminars
• Conferences and symposia
• Sporting and recreational courses

The following does not constitute education:-

• Routine meetings
• Plays and concerts
• Sports meetings
• Weddings
• Hospitality events

Any registration fee charged for the event is considered to be part of the overall payment for the provision of the education.3

(ii)              Eligible body[3]

The University of St Andrews is an eligible body for the purposes of the VAT exemption.

Closely related costs[4]

Provided the criteria for exemption above are met, certain items that are closely related to the supply of education to persons attending the conference may also qualify for exemption.  These must be for the direct use of the attendee and necessary for the delivery of education to them.

HMRC accept the following as closely related:-

• Accommodation
• Catering
• Transport
• School trips and field trips

The following are not included in the exemption

• Supplies to staff, tutors and other non-students (therefore if you are teaching on the conference or part of the admin team and are not receiving education for a fee the exemption does not apply to you).
• Supplies to partners of attendees (unless they are an attendee in their own right). [5]
• Optional social events/ dinners etc.5
• Clothing, laundry and other personal services.
• Alcoholic drinks

Additional nights’ accommodation on courses:- 5

If the additional nights’ accommodation arises due to the logistical difficulties of arriving in time for the start or in getting home at a reasonable time at the end, then they can be considered as closely related to the conference.  If not then they are considered a separate supply and accordingly would be standard rated. 

Treatment of accommodation where delegates are not charged conference registration fees as they are covered by a grant:- [6]

As long as the booking receipt states that the fee has been met on the attendee’s behalf, and as long as the charge is at or below cost then accommodation can be classed as closely related.

2.     Where there is a joint conference (cost sharing arrangement)

If the conference meets the requirements above i.e.

• a supply of education;
• the other party being an eligible body and;
• provided for a fee.

Then in the invoice to recharge costs to the other party, closely related costs are exempt and other non-closely related costs will be standard rated.  Remember to get evidence of the eligibility of the other party.

Where the above requirements are not met in part or in full then the recharge will have to have the stand alone (non-closely related) VAT treatment applied.

3.     Where the University is providing conference facilities and venue hire

Provided to another eligible body for supply of education[7]

As above, if the University provides conference facilities to another eligible body (see Appendix A), rather than direct to its students, to make an exempt supply of education, then both the room hire and closely related supplies may be treated as exempt.

In any instance when an entity is claiming to be an eligible body, proof of eligible body status will be required or VAT will need to be charged.  The relevant criteria to be an eligible body and forms can be found at Appendix A.

Room hire

In other instances where the University acts as a venue and hires out a room or a hall the supply of the room is in most instances exempt from VAT[8].

Exceptions, which are therefore standard rated, are:-

• Room hire in the Gateway as there is an “option to tax” in place[9].
• Room hire used for the purpose of a supply of catering (e.g. a wedding)[10].
• Room hire where the purpose is to use the special facilities contained therein (e.g. lab hire).[11]

Catering[12]

If in addition to providing a room you provide minimal refreshments such as tea, coffee and biscuits, the room the incidental catering will be treated as a single exempt supply. But, if you serve substantial refreshments such as a meal or buffet, the catering should be treated as a separate supply and you must account for VAT.

Other charges¹²

Where a meeting room is supplied, together with meal(s) and overnight accommodation in return for an inclusive charge, each element is treated as a separate supply. The catering and the overnight accommodation is taxable.

Any additional goods or services which are separately charged for are standard rated (for example, catering, car parking, use of equipment and licensed bars).

Cancellation charge[13]

Such charges are outside the scope of VAT.

Deposits

• When the event is VAT exempt then the deposit can also be treated as VAT exempt.
• When the event is fully VATable we need to look at whether the deposit is refundable or non-refundable.
  • We would charge VAT on the deposit but if the customer does not use the services and then we keep the deposit we would then need to make a VAT adjustment as no supply is being provided and this would then be outside the scope of VAT.
  • If the event is a mixture of VATable and non-VATable items then this would need to be allocated fairly between the two supplies and VAT accounted for on the element attributed to the VATable supply with the necessary adjustment made when the final invoice is issued.

Internal bookings

All internal bookings are outwith the scope of VAT as the University cannot charge itself.

Other costs/ combinations

As the treatment of VAT can be very specific in given situations we recommend that you contact the tax and treasury team via email at vatenquiries@st-andrews.ac.uk, we can then investigate and advise on the appropriate tax treatment.

The above can be summarised into the table below:-

Important note:-

For costs to be “closely related” they MUST be for the direct use of the attendee and necessary for the delivery of education to them. 

HMRC accept the following as closely related:-

• Accommodation                                                                        
• Transport
• School trips and field trips                                                         
• Catering*

*Alcoholic drinks however, cannot be considered closely related.

Appendix A

Eligible Bodies[14]

An eligible body is one of the following:

• school, university, sixth form college, tertiary college or further education college or other centrally funded higher or further education institution (defined as such under the Education Acts); or
• the governing body of one of these institutions:
• local authority;
• government department or executive agency;
• non-profit making body that carries out duties of an essentially public nature similar to those carried out by a local authority or government department;
• health authority;
• non-profit making organisation that meets certain conditions (see below) ; or
• commercial provider of tuition in English as a foreign language (EFL) - in which case special rules will apply.

Non-profit making organisations

In order to qualify as a non-profit making organisation for the purposes of eligibility it must conform to the following:-

• be a charity, professional body or company that;
• cannot and does not distribute any profit it makes; and
• any profit that might arise from its supplies of education, research or vocational training is used solely for the continuation or improvement of such supplies.

APPLICATION FOR VAT EXEMPTION (ELIGIBLE BODY)

ORGANISATION: ____________________________________________________

DATES OF BOOKING:  ________________________________________________

I declare that this course / conference which is being organised at:

___________________________________________________________________

is:

a)        being provided by an “Eligible Body” (see definition of “Eligible Body” in notes below); and,

b)        where the Eligible body status is achieved by reference to being a non-profit making body that restrictions regarding distribution of profits and the use of any funds generated by the above booking is used solely for the continuation or improvement of such supplies are met; and

c)         the subject matter of the course / conference is educational, research or vocational training; and

d)        the catering and accommodation provided will be used directly by my students / delegates.

I understand that the catering and accommodation provided for lecturers / teachers will not be VAT exempt.

N.B. The provision of alcoholic drinks and services supplied directly to conference organisers’ e.g. clerical assistance, use of fax machine etc. are excluded from the exemption.

Please consider carefully before signing the declaration.  If you sign when you are not entitled to do so, we will pass on to you any VAT charges, interest or other financial penalties which may be incurred by the University as a result.

Signed: _________________________        Date: __________________________

Position;  ________________________      

Notes to Application for VAT exemption:

“Eligible Body”

An eligible body is one of the following:

•             school, university, sixth form college, tertiary college or further education college or other centrally funded higher or further education institution (defined as such under the Education Acts); or

•             the governing body of one of these institutions:

•             local authority;

•             government department or executive agency;

•             non-profit making body that carries out duties of an essentially public nature similar to those carried out by a local authority or government department;

•             health authority;

•             non-profit making organisation that meets certain conditions (see below) ; or

•             commercial provider of tuition in English as a foreign language (EFL) - in which case special rules will apply.

Non-profit making organisations

In order to qualify as a non-profit making organisation for the purposes of eligibility it must conform to the following:-

•             be a charity, professional body or company that;

•             cannot and does not distribute any profit it makes; and

•             any profit that might arise from its supplies of education, research or vocational training is used solely for the continuation or improvement of such supplies.