To ask the Minister of Education to outline (i) why Grant Maintained Integrated schools pay VAT on free school meals; and (ii) why this cost cannot be recovered from the school budget.

(i) The rules in relation to how VAT is charged and the rates applied are determined by HM Revenue and Customs. Where a Grant Maintained Integrated school chooses to contract out its school meals service (including free school meals) to a third party, such as the EA or another commercial organisation, we understand that the service may be subject to VAT depending on the service supplier VAT status.

(ii) From 2014-15, as a result of the Independent Review of the Common Funding Scheme, VG and GMI schools are now able to submit VAT in Grant claims to the Department for the amount of VAT incurred on allowable expenditure. VAT reimbursement incurred on canteen expenditure, including free schools meals, is not allowable and DE does not provide VAT in Grant funding for this.