This really is a very odd argument. Have you never recieved an invoice for anything before? I've attached an example image for you to see what they look like. It's exactly the same for school fees.
-The VAT is charged to the person buying the good/service (the parents, on behalf of the child).
-The consumer pays the VAT on what they have bought (education), at the legally defined rate. No adjustments, no choice by either the school or the parent
-It's collected by the business selling the goods/service (the school).
-Before sending the VAT collected to HMRC, the school may offset VAT they themselves paid when buying things they needed to provide the service (eg pens, building works etc).
-Each business along the supply chain does the same: collecting the VAT on the sale price, but then offsetting what they themselves bought. Ie they are responsible for collecting the tax on the value they themselves have added (hence the name).
-When all the parts along the supply chain are added up, the government recieve the whole 20% on the final price to the consumer (the parent) in total
This is exactly the same for all VAT.
Previously education wasn't taxed, so the end consumer (of pens, building work etc) was the school. That VAT was already being collected(by the supplier) and paid (by the school). But most of a schools costs are salaries, not goods. So now all those teacher salaries (plus the usual employment taxes) are included in the new total 'educational service' be taxed and the new end consumer (the parent) pays 20% VAT on the lot.
I do understand why you're confused. Labour deliberately used misleading, inflammatory language to pretend that schools had a choice. They don't. They are legally obliged to collect 20% on education services from the parents on behalf of HMRC. (Labour use inflammatory, populist, deliberately deceptive language a lot. You should watch out for it.)
Schools can, of course, reduce their fees. Then the fees+VAT will obviously be lower than fees+VAT at the original fee level. But then the school is recieving less in fees.🙄
Many schools have done exactly that. They reduced fees to reflect the VAT on supplies they can now offset: VAT the school was already paying, and so were already reflected in fees. (Note that state schools get that VAT on anything they buy reimbursed by the state, in addition to the per-head funding and their capital costs)
Schools also reduced their fees beyond that - making a temporary loss in order to smooth the punitive new cost to parents of the new 20% tax Plus the increase in business rates. Plus the increase in employers NI (remembering that most of a school's cost is salaries). Those extra taxes are on the school, but fees must reflect those increased costs. Yep, VAT is charged on the fee increase needed to pay all those other new taxes too... All added within a few months.. Labour really are fuckers.
But obviously that was just smoothing and fees must reflect costs or else the school will go out of business... as they have been at twice the usual rate since Labour introduced their deliberate destructive policy. Not many industries could withstand that kind of assault.