No Tax on School Fees Proposal

27 July 2007

Parents with children studying at fee paying schools in Jersey will not have to pay Goods and Services Tax (GST) on school fees if the States approve. Following a series of discussions, the Minister for Treasury and Resources will propose implementing legislative arrangements which will enable Jersey College for Girls, Victoria College and their respective preparatory schools to be exempt from GST.

Under GST proposals private schools such as Beaulieu and De La Salle are exempt from GST since they are classed as charitable organisations. The decision to extend GST relief to all fee paying schools provides consistency and, thus, is fair to all.

The Minister for Education, Sport and Culture, Senator Mike Vibert is pleased with the decision. He says “I believed it was vitally important to have a level playing field. If GST is not to be paid on private school fees then the same should apply to all fee paying colleges and preparatory schools”.

The States of Jersey will introduce GST in Jersey next spring at a rate of 3%. It is estimated this will bring in £45 million to fund public services, including education.