The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. It is not possible to charge VAT on education fees as this is contrary to EU VAT law. Article 132(1)(i) of the EU VAT Directive provides that:
" 1. Member States shall exempt the following transactions:
(i) the provision of children's or young people's education, school or university education, vocational training or retraining, including the supply of services and of goods closely related thereto, by bodies governed by public law having such as their aim or by other organisations recognised by the Member State concerned as having similar objects;"
This compulsory exemption from VAT on educational services is reflected in Irish VAT law.