Published on 25 September 2026, eBrief No. 137/26 consolidates Revenue’s position on the tax treatment of various education-related payments, including scholarships, bursaries, research grants, and student maintenance grants. The guidance draws on Sections 193, 194, and 195 TCA 1997, as well as the Student Support Act 2011. It distinguishes between payments made to individuals (often exempt) and payments made to institutions (potentially taxable trading income). The eBrief also addresses the VAT treatment of educational services supplied by eligible bodies under Schedule 4, Group 6 of the VAT Act.
Key Takeaways
- Scholarships and Bursaries Generally Exempt: Payments made to students to support full-time study at approved institutions are exempt from income tax under Section 194, provided they are not linked to employment or services rendered. This includes SUSI maintenance grants and university scholarships.
- Research Grants May Be Taxable: Grants paid to researchers or postgraduate students that require specific deliverables or are tied to employment contracts are treated as taxable income under Schedule E. The guidance sets out a ‘dominant purpose’ test to determine taxability.
- VAT Exemption for Eligible Bodies: Educational services supplied by recognized schools, universities, and training centers remain VAT-exempt. However, commercial activities such as conference hosting, facility rental to third parties, and consultancy are standard-rated.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement