Andrew Needham looks at charging and reclaiming VAT on staff training.
When considering VAT and staff training, the first point to determine is whether VAT is being charged on staff training. The basic position is that if a business engages a profit-making organisation to provide vocational training to its staff it will normally be charged VAT at the standard rate.
Vocational training occurs where trainees attend courses, conferences, lectures, workshops or seminars and the purpose is to prepare for future employment or add to existing knowledge to improve their performance in their current work. This would normally be subject to VAT at the standard rate of VAT.
However, supplies of training are exempt if someone is contracted or subcontracted to provide education or vocational training