WELB Music Service

This scheme provides pupils of WELB schools with musical instruments to be used for Instrumental Tuition provided at schools or at Music Centres.

The sale of musical instruments is a non-business activity provided there is no intention to make any profit from the sale proceeds.

Under this scheme, the pupils attending WELB schools can purchase musical instruments through the WELB Music Service, provided they are being taught to play that instrument in the school or at a Music Centre or are involved as a regular member of a Music Service orchestra, band or ensemble. Normally pupils will have been in receipt of Instrumental Tuition for a period of no less than 6 months.

The sale of the instrument by the WELB Music Service to the parents of the pupil is a non-business activity, so no VAT is charged on it.

The consequence of this is that the WELB Music Service can recover the VAT charged to it by the dealer selling the instrument.

HM Customs and Excise do not approve individual schemes but would expect the following rules to be applied to determine whether goods and services supplied by the WELB Music Service are closely related to education:

The goods and services must be an integral part of the education provided;
The pupil must receive education from the WELB – either at an WELB maintained school or in connection with a WELB Music Service run educational activity, such as an orchestra or band;
The instrument must be portable and taken to school or a Music Centre on a regular basis for instrumental tuition;
The goods and services required must be purchased from the WELB Music Service;
The goods and services will be delivered to and distributed from the WELB Music Service at Omagh;
Payment must be made to the WELB Music Service before the requisition is placed;
Evidence must be kept to show that the recipient of the goods and services has been receiving education from the WELB and that what has been supplied was essential to that education;
The price of the goods and services supplied must be at or below cost. ‘Cost' means the full overhead – inclusive price of supplying the goods and services to the pupil and includes, for example, the costs associated in administering the AIPS scheme;
An administration charge of £5 per purchase will be charged;
These rules will apply to all items of goods and services closely related, and essential, to education.

The scheme does not permit parents to purchase VAT free musical instruments from retailers. However, it is accepted that parents will need to select the most suitable instrument from the retailers stock.