PARENTS face a 20 per cent rise in the cost of school trips because of changes to the tax system brought in by the European Union.
Tax experts say families face being penalised because of the scrapping of a UK opt-out to the way VAT is imposed.
The changes, which take effect from January, mean schools and local authorities will now be liable for VAT on overnight accommodation
and travel within Europe.
This could result in an additional £20 for every £100 shelled out by parents who let their children participate in school trips in the UK. Local authorities will face extra bills totalling thousands of pounds.
Overseas trips will be affected, but to a lesser degree, as VAT rates in the rest of Europe are lower. However, experts warned the rise will add to the cost.
With more schools electing to base trips in the UK, to avoid the higher costs of taking pupils abroad, the EU changes will hit hard.
Parents' groups warned some children would lose out on valuable educational trips at a time when household incomes were being squeezed.
Adrian Wood, the head of Public Sector Indirect Tax for KPMG in Scotland, said:
"At a time when councils across Scotland are facing budget cuts and need to make significant savings, changes to the VAT rules will result in increased costs to local authorities, which are likely to be passed on to parents.
"With household budgets under strain, the higher cost of school trips could result in families being unable to afford to send their children on important educational excursions."
Wood added that, as well as hitting parents in the pocket, the move was also likely to have an adverse financial impact on UK hotels, coach operators, venues and tour operators.
Until now, the EU has allowed school tour operators in the UK to opt out of paying VAT on travel and accommodation costs, a saving they could pass on to councils, schools and parents.
But the opt-out provision is being removed at the end of 2009 as part of tax harmonisation plans.
The UK's VAT level was temporarily lowered by Chancellor Alistair Darling from 17.5 per cent to 15 per cent at the end of 2008 to stimulate consumer sales during the credit crunch.
But the rate will go back up to 17.5 per cent after the New Year and tour operators say they require a further 2.5 per cent to maintain profit margins.
Parents said the costs of school trips were already high and increasing every year.
Paul Kelbie, from Edinburgh, who has two boys, aged nine and 11, said: "I believe in the value of school trips but we have two children and if you are seeing the costs go up, you really notice that.
Judith Gillespie, policy development manager of the Scottish Parent Teacher Council, believes parents will have to bear the brunt of any rise in costs.
She said: "Obviously parents will have to pay more for trips as there is no one to absorb the VAT. Trips will inevitably cost more. Not all parents can afford to do what's currently charged."
