Assisted Instrument Purchase Scheme - Government Guidelines
The following text is taken from a document entitled "The Assisted Instrument Purchase Scheme - a Guide for Parents and Schools" published by the Music Industries Association, and approved by HM Customs and Excise.
The Assisted Instrument Purchase Scheme enables pupils having music lessons at LEA-maintained schools to purchase musical instruments without paying VAT.This guide is designed to explain the scheme's rules and procedures to both parents and schools, with the intention of helping as many pupils as possible to benefit.How does the Scheme Work?
What are the Rules?
The general conditions that the student and school must comply with to benefit from the scheme are as follows:
Operation of the AIPS Scheme
The onus is on LEAs to ensure they comply with all VAT legislation and that all AIPS sales are transacted correctly according to the rules stipulated. For this reason, the operation of the scheme may vary slightly from area to area in order that individual LEA's internal controls are complied with.
In most instances, schools order directly with suppliers but, in some LEAs, the Music Service or a dedicated administration function deals with all AIPS transactions centrally. In such instances, your school or music teacher should know how to take advantage of the scheme.
In addition, some LEAs make a small administration charge to parents for processing the transaction, which obviously involves an amount of work for their school and education finance department.