European ambassadors say international schools in UK should avoid VAT levy

European ambassadors have warned that imposing VAT on international schools in the UK could lead to hundreds of pupils leaving.

German ambassador Miguel Berger and French ambassador Helene Duchene told The Times they wanted international schools excluded from plans to impose 20% VAT on private schools.

From January, the Government plans to remove the VAT exemption and business rates relief for private schools to enable funding for 6,500 new teachers in state schools.

Currently, independent schools do not have to charge 20% VAT on their fees because there is an exemption for the supply of education.

Mr Berger said Deutsche Schule London, based in Richmond, had around 900 pupils and “between 20 and 25 per cent might be obliged to leave the school” if the change was introduced.

He added: “The German state covers 30 per cent of the costs of the school and 50 per cent of the investment, so there is a lot of state funding that goes into the school.

“For expats coming here for two, three or four years wanting their children to go back to the national system, their only option is to go to these schools.

“We would really like to see the British government recognise the importance of these schools — not only for our political and cultural relations but also for the people this will affect.”

Mr Berger said executives of companies that invest in the UK “must know they can send their children to a German school”.

Critics of the VAT change have warned about the short timescale involved and the risk of unintended consequences, including the impact on children with learning difficulties who attend specialist independent schools and military families.

There are 11 schools accredited by the French Ministry for Education in the UK, nine of which are in London.

Ms Duchene said these schools would be “weakened” by the VAT change.

She added: “We are not asking for an exemption: we are not the target of this VAT measure.

“Our schools are different from the target ones since we follow special courses preparing for French exams.

“These parents don’t have a plan B because other schools don’t follow the French curriculum.”

She said 6,300 pupils could be affected in the UK, adding that the change was “not in line with the reset to our relationship which the British government has instigated”.

Ms Duchene said VAT “could also be an issue for our companies, as they need these schools for employees coming to work here”.