10 May 2017 
Amanda Darley, Head of Operations and Engagement
In a surprise decision in the Brockenhurst College case, which departs from the AG's Opinion given in February, the CJEU has held that the supplies of meals to customers in a restaurant staffed by the college's catering students and supplies of performances to the public by performing arts students can be exempted from VAT as being closely related to the education of the students. The AG had opined that the supplies were not closely related and would therefore be taxable. The CJEU decision supports those of the First-tier and Upper Tribunals in the UK. HMRC have previously accepted and paid claims based on the UT decision, but had maintained that they would reverse these if the Court of Appeal decision went in their favour. We await what HMRC will say now, once the case is sent back to the Court of Appeal by the CJEU. However, in the meantime, it may be worth reviewing what activities your university carries out that are similar in nature, and considering submitting any claims for periods which may fall out of time.
