Brian Lenihan Jnr (Dublin West, Fianna Fail)
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2057I am advised by the Revenue Commissioners that the provision of education by schools and educational establishments is exempt from VAT under paragraph 4(3) of Schedule 1 of the Value-Added Tax Act 1972 (as amended). Providers of education have no entitlement to reclaim VAT charged to them on purchases of goods or services used in the provision of their VAT-exempt activity of education. This includes VAT incurred on the purchase of musical instruments. It is understood that in the UK musical instruments purchased by schools directly from suppliers are subject to VAT in the normal way. However, local education authorities (LEAs) in the UK are subject to special right-of-recovery VAT rules in certain circumstances and it may be possible for schools acquiring musical instruments through LEAs to benefit in some instances from VAT recovery.

I have no plans to introduce special VAT arrangements in relation to musical instruments or equipment purchased by schools.