A to Z VAT Guidance
1.1 Accommodation
i. The supply of bedded accommodation is normally standard rated. However, supplies of
accommodation to the University’s own students or candidates are VAT exempt.
Accommodation supplied to pupils, students and trainees of other schools, colleges or
universities that are eligible bodies are also VAT exempt.
ii. Supplies made direct to students of overseas universities and those of commercial
colleges are taxable at the standard rate, unless exempt education is also provided.
iii. When bedded accommodation is supplied to persons, other than those described above,
the University is acting in a similar capacity to a hotel and the supply is standard rated. This
includes accommodation provided to University staff, visiting lecturers and the general
public. VAT should be charged in this case.
iv. For the letting of rooms, without bedded accommodation, please refer to ‘lettings’.
1.2 Admission charges
i. Admission charges to theatre productions, sporting events, exhibitions, concerts etc. are
normally standard rated, both to the University’s own students and to other persons. The
sale of a programme, in place of a ticket, does not avoid the need to account for VAT.
1.3 Alcohol
i. Sale of alcohol from University bars is always standard rated, no matter who the drink is
sold to.
1.4 Advertising (see Appendix A)
i. Advertisements on any subject, including staff recruitment, which communicate to the
general public, are zero‐rated for VAT purposes providing that they are on a third party’s
time and space. There is no longer any requirement to show the logo of the University on
the advertisement to obtain this zero‐rating status. Advertisements can be in all
conventional advertising media such as television, billboards, newspapers and printed
publications. However, certain items such as commemorative items (pens, mugs etc), adults
clothing, exhibition stands and space and adverts on the University’s own space do not
qualify for the relief. For adverts that qualify, the Finance Office will need a copy of the
zero‐rating certificates as shown under Appendix A which need to be sent to the suppliers at
the time of ordering.
HMRC ref Notice 701/58
1.5 Buildings(see Appendix B)
i. The construction of buildings and certain works to protected buildings, intended to be
used by a charity solely for non-business purposes or as a village hall or similar, can be zerorated subject to certain criteria being met.
In this respect education is regarded for VAT purposes as a business activity and hence this
potential relief is limited to buildings which are primarily to be utilised for publicly funded
research see Appendix B for zero rating certificate to be completed and sent to the supplier
with a copy for the Finance Office.
Buildings constructed for residential purposes may also qualify for relief. Zero-rating may
also be possible for parts of buildings specifically adapted for use/access by the disabled.
This is a complex area and for further details and consideration of potential for claiming
relief on a particular project please contact the Finance Office. See HMRC VAT Notice 708
for full details.
HMRC ref Notice 708
1.6 Car parking
i. Where it can be separately identified, money collected from staff or visitors in respect of
car parking charges is taxable at the standard rate.
ii. Clamping fines collected by the University are taxable at the standard rate, regardless of
whether they are collected from students, staff or visitors.
1.7 Catering & hospitality
i. The basic rule is that all supplies of catering and hospitality are taxable at the standard
rate if they are not closely related to the supply of education.
ii. In 1997 HM Customs withdrew the ‘majority student use’ concession, whereby income
from refectories was wholly treated as VAT exempt. If catering income from staff or visitors
can be separately accounted for, then standard rated VAT is due on these takings.
1.8 Conferences
Organised solely by Aberystwyth University i Supplies of lectures, talks, etc. are classed as
supplies of education and therefore exempt for VAT purposes. Supplies of accommodation,
catering and other facilities to those attending the conference are classed as incidental to
the supply of education and therefore exempt for VAT purposes.
HMRC Notice 701/30
1.9 Conferences organised jointly between Leeds Aberystwyth University and
another body
i. A jointly organised conference should be treated the same way as one provided solely by
the University and will be exempt provided that: its subject matter falls into the general
pattern of higher education and research, or the administration of education; and its
contents and administrative arrangements are supplied and controlled primarily by the
University; and its financial transactions are accounted for in the records of the University.
1.10 Conference facilities
i. Where the University is letting out its conference facilities to an external party, then
providing the external party is an ‘eligible body’ (refer to section 1.18) and is using the
facilities for educational purposes, then the supply will be exempt for VAT purposes. A
certificate should be sent to the external party for them to sign to confirm they meet these
conditions.
ii. Where the external party is not an ‘eligible body’ and the facilities are not being used for
educational purposes, the supply is generally one of a mixture of facilities. The VAT liability
of each facility provided must be separately accounted for. For example, the provision of the
conference room, overhead projector, photocopying services, security or porter’s time will
be taxable.
1.11 Consultancy
i. All forms of consultancy by the University are taxable at the standard rate, if the supply is
delivered in the United Kingdom. The provision of business efficiency advice, for a specific
client, cannot be viewed as a supply of education and the normal consultancy rule applies.
Particular care must be taken with ‘evaluation’ projects, which are generally determined to
fall within the VAT definition of consultancy. The VAT liability of incidental expenses, such as
travel expenses, will follow the main supply and thus are taxable, even if no VAT was paid
on the purchase costs.
ii. Supplies to clients, where the place of supply is within a European Community country,
may be zero‐rated under ‘reverse charge’ VAT rules, provided the evidence of client’s
business status (their VAT registration number) is obtained and quoted on the University’s
sales invoice.
1.12 Contractor construction certificates
i. Contractor ‘requests for payment’ and Architect certificates are not valid tax invoices,
even though they may give notice of the amount of VAT payable. A tax invoice must be
obtained and matched to the original certificate before payment can be made. An
alternative to this
is the operation of an authenticated VAT receipt procedure, by agreement between the
supplier and the University. In this case the University prepares a receipt and forwards it
with payment to the supplier, who authenticates it and returns it to the University.
1.13 Disability Discrimination Act (DDA)
i. As a charity, the University can benefit from VAT reliefs on purchases of goods and
services for disabled people. The relief includes the purchase and fitting of induction loops
in buildings, fitting out of a disabled toilet and ramps. Please contact Finance Office for
further details and to obtain a zero‐rating certificate to send to the supplier.
1.14 Discounts
i. If an unconditional discount is offered and the discounted amount is paid, the tax value is
based on the discounted amount. If a discount is offered on condition that an invoice is paid
within a specified time, the tax value is based on the discounted value, even if the invoice is
not paid within the time.
1.15 Donations
i. VAT is not chargeable on pure donations of cash, i.e. where there are no strings attached
to the donation. But if the “donation” is made on the condition that the University provides
something in return, then the University is making a supply of services to the donor (or
sponsor), which will be liable to VAT under the normal rules. The mere acknowledgement of
a genuine donation, e.g. naming a Chair after the donor does not attract VAT. Restaurant
tips and gratuities, i.e. monies freely given, are not liable to VAT.
ii. See 1.38 Sponsorship for additional guidance.
1.16 Distance learning
i. This emerging field requires each case to be judged on its merits. Please contact the
Finance Office for advice.
1.17 Education and ‘closely related’ goods/services
i. The supply of education is VAT exempt. Education in this context means a course, class or
lesson of instruction or study, in any subject, whether or not that subject is normally taught
in schools, colleges or universities and regardless of where and when it takes place.
ii. Education includes lectures, educational seminars, and conferences, together with
sporting and recreational courses. It also includes the provision of distance teaching and
associated materials, if the student is subject to assessment by the University.
iii. Separate charges for registration or examination fees are part of the provision of
education and are also VAT exempt.
iv. From 01.08.1994 all courses in ‘English as a Foreign Language’ (EFL) are classed as VAT
exempt.
v. In addition to the supplies of education that the University makes and which are exempt
from VAT, ‘closely related’ supplies can be similarly exempt from VAT.
vi. ‘Closely related’ supplies made by the University are only exempt if:
they are for the direct use of the student; and they are necessary for delivering
education to that person.
vii. However, if the University contracts to provide closely related goods or services to
another eligible body, rather than direct to its own students, these supplies are exempt
only if the body receiving them supplies education in the course or furtherance of business,
i.e. it charges a fee.
1.18 Eligible body
i. An ‘eligible body’ within the meaning of the 1994 VAT Act is broadly any organisation,
which is precluded from distributing any profits, it makes. The definition of an eligible body
includes schools, universities, colleges, local authorities, government departments, health
authorities, charities and certain un‐incorporated associations.
1.19 Errors
i. If a supplier sends an invoice on which the VAT is incorrectly calculated, the VAT should
not be altered, as the University cannot prove to Customs that the supplier has also
corrected it. The supplier should cancel the wrong invoice and issue a replacement.
ii. Where the University has cause to reduce or cancel a sales invoice, which was subject to
VAT, then a credit note shall be produced and sent to the customer, along with any
replacement sales invoice.
1.20 Examination services
i. Supplies of examination services by the University are VAT exempt. Supplies of
examination services covers: the setting and marking of exams; setting educational or
training standards; making assessments; and other services provided with a view to
ensuring educational and training standards are maintained. Practical examples
of this activity include National Vocational Qualification (NVQ) assessments, course
accreditation services, course validation and student registration.
1.21 Fund raising
i. Goods and services supplied in conjunction with one‐off fund raising events by charities
are exempt, but the event must be promoted as a fund raising event.
1.22 Internal recharges
i. When internal recharges are being processed between Departments, the gross cost
incurred by the providing Department should be recharged to the consuming Department.
1.23 International goods and services
i. A supply of goods to a customer in an EU member state should be zero‐rated under a
procedure known as the ‘reverse charge’, whereby the customer’s VAT registration number
must be obtained and must be quoted on the University’s sales invoice. If the customer is
not VAT registered, or the number is not obtained, then the normal UK VAT liability rules
apply. Please provide details of any sales to an EU customer to Stephen Humphreys in the
Finance Office ext.8656 e-mail tsh@aber.ac.uk
ii. It follows that when the University is buying goods from another EU Member State, the
supplier will be required to follow the ‘reverse charge’ procedure and will require the
University’s VAT registration number when the order is lodged. Departments should note
that the reverse charge procedure is designed to ensure that VAT is accounted for as if the
purchase had been made in the UK. Therefore, there is no potential to save VAT by buying
from a member state (where the local VAT rate is lower than that in the UK).
iii. A supply of goods outside the European Union is zero‐rated.
iv. Determining the VAT liability of services provided to customers outside the United
Kingdom can be particularly complex and Departments are encouraged to contact the
Finance Office on a case by case basis. It is important to obtain evidence of the business
status of the international customer (usually their VAT registration number) and information
about where the service is physically being performed.
HMRC ref VAT Act section 7/10
1.24 Language tapes
i. The supply of language tapes, either by the Library or another Department, is standard
rated unless it is a supply to the University’s own students for an educational purpose, or to
another supplier of exempt education for use by their own students.
1.25 Lettings of rooms (excluding conference facilities)
i. The letting of rooms for educational purposes, e.g. lectures and courses is exempt.
ii. The letting of rooms for the purpose of a supply of catering, e.g. halls for dinners or
parties, is taxable where it is supplied together with a supply of taxable bedded
accommodation.
iii. The VAT liability of plain room hire depends on the geographic location of the room.
Certain buildings have ‘opted to tax’ eg Arts Centre Business Units which means plain room
hire is taxable at the standard rate. In all other locations, room hire is exempt.
iv. For letting of conference facilities, please refer to section 1.10.
1.26 Laundry charges
i If a charge is included within the overall residential accommodation fee then the supply is
VAT exempt. Otherwise, if a separate charge is levied, the supply is taxable at the standard
rate.
1.27 Library services
i. The supply of printed matter by HE institutions’ bookshops is taxable at either the
standard or zero‐rate, depending upon its nature. Standard rated materials, which are
identified as being sold only to the University’s students, for an educational purpose, are
exempt. If the University lends or hires a zero rated article any charge should also be zero
rated.
ii. Where the Library acts as a back‐up library, supplying photocopies, microfilms etc. to the
British Library (Lending Division), the British Library should be invoiced for such supplies
(together with any handling charge) at the standard rate. Supplies of books and other zero
rated printed matter to the British Library will remain zero rated.
iii. The supply of a photocopy of a complete book, booklet etc. is zero rated, but the supply
of photocopied extracts is standard rated, except where the supply is to the University’s
students for an educational purpose.
iv. If the University sells licences to third parties, allowing them access to print copies of our
publications, then these are a standard‐rated supply and VAT should be charged.
1.28 Medical research (see Appendix C)
i. VAT relief (zero rating) exists for the purchase of relevant goods/services used mainly for
medical or veterinary research. In order to secure relief a declaration must be provided to
the supplier when the University order is submitted. Departments should note that
medical research in this context potentially covers uses in physiology, physiotherapy,
nursing, speech therapy and certain sport sciences. Please contact Stephen Humphreys in
the Finance Office for further advice on this topic.
HMRC ref Notice 701/6
1.29 Nursery services
i. Fees for crèche and nursery services are VAT exempt, provided that the nursery is
registered under the Children Act 1989.
1.30 Payphones
i. In 1999 British Telecom (BT) was directed to treat payphone commission as a variable rent
for the right to occupy land. As a consequence the self‐billing system operated by BT ceased.
The University must now issue a tax invoice to BT for any ‘commission’ monies received
from payphones situated within the Civic Quarter site only.
1.31 Postage and delivery charges
i. The sale of stamps by the University is exempt for VAT purposes providing that the stamps
are sold at face value or below.
ii. If the University makes a sale of goods and the delivery charge is part of the contract then
the VAT liability of the delivery charge follows that of the main supply e.g. the University is
selling a book and delivery is included then no VAT would be chargeable on either the book
or the delivery charge. However, if delivery is not part of the contract then the delivery
charge is deemed to be a separate supply and VAT may become chargeable.
1.32 Pro‐forma invoices/request for payment
i. Where payment is made to a supplier on a request for payment, cash with order or pro‐
forma invoice basis, Resource Centres must ensure a tax invoice is obtained and forwarded
to the Creditors Section, clearly marked “For information only DO NOT pay ”.
1.33 Purchase card
i. The University operates a purchase card scheme for the procurement of low value items.
Departments must ensure that for purchases from suppliers who are not ‘VAT enabled’, a
VAT receipt or tax invoice is obtained for the University’s records. For further information
on this please refer to Purchase Card Procedures.
1.34 Research (see Appendix D)
i.The VAT classification of Research often presents problems. In assessing the VAT liability of
a project two important factors must be considered. Firstly, there is a need to ensure that
the project falls within HM Revenue and Customs’ definition of research and secondly, the
business status of the recipient needs to be established.
ii. Research is defined by HM Revenue and Customs as follows:
“Research means original investigation in order to gain knowledge and understanding. Your
supply is one of research whenever your activities are directed towards increasing areas of
knowledge or understanding. It is the intention at the beginning of the project that will
determine whether the supply qualifies as research. If the intention was to progress
understanding, the supply is one of
research.”
The following are examples of work that does not qualify as research:
• management consultancy and business efficiency advice;
• collection and recording of statistics, without accompanying collation, analysis and
interpretation;
• market Research and opinion polling;
• writing computer programs; and
• routine testing and analysis of materials, components andprocesses.
However, some of these activities will qualify if you supply them as part of a research
project.”
iii. Supplies of research by the University are currently VAT exempt, provided the supply is
to an ‘eligible body’ – see paragraph 1.16 for definition of an eligible body. The onus is on
the University to be satisfied that the customer is an eligible body, otherwise the supply
must be treated as standard rated.
1.35 Second‐hand goods
i. Normal VAT rules apply to the sale of second‐hand goods by the University. For example
the sales of a second hand computer is taxable.
1.36 Self‐billing
i. Self‐billing is an area that often causes confusion. It may arise in the context of royalty
payments or other commission style receipts, where the customer has the data, e.g. sales
volume to calculate amounts due to the University. The customer, operating an approved
self‐billing scheme, issues a tax invoice to himself or herself on behalf of the University.
Departments must ensure they account for the VAT shown on the invoice when paying in
the sum received.
1.37 Shops
i. Departments must inform the Finance Office immediately, if consideration is being given
to the opening of a new ‘shop’ or ‘sale point’. The Financial Control Section will advise on
the VAT accounting arrangements that should apply to takings, which may include the need
to operate a special VAT accounting retail scheme.
1.38 Sponsorship
i. Sponsorship money, which confers advertising or promotional benefits, or obtains special
rights, e.g. privileged use of facilities or expertise, is taxable at the standard rate.
ii. The intention of the parties at the outset should be considered. It is important that any
agreement with a sponsor takes these points into account, in order to avoid potentially
embarrassing and unnecessary misunderstandings about amounts payable. VAT registered
sponsors may require the University to furnish them with a tax invoice for their records.
iii. Customs have confirmed they accept that the simple acknowledgement of a corporate
donation does not give rise to a “supply” for VAT purposes. However, they take the view
that use of a corporate logo on a charity website or stationery would create a supply of
sponsorship on which VAT should be charged.
1.39 Sport: letting of sports facilities (see Appendix E)
i. Charges to the University’s own students for the use of sports facilities are exempt. See
Appendix A for VAT liability flowchart. Supplies to other organisations and individuals are
standard rated unless either: they are provided to another provider of exempt education for
the direct use by that body’s own students in connection with a supply of education; or they
meet the conditions for exemption as lettings for a continuous period of use exceeding
24 hours or more, or a series of lettings of ten or more periods, whether or not
exceeding 24 hours in total, where each of the following conditions has to be satisfied:
• each period is in respect of the same activity carried on at the same place;
• the interval between each period is not less than one day and not more than 14 days;
• consideration is payable by reference to the whole series and is evidenced by written
agreement;
• the grantee has exclusive use of the facilities; and
• the grantee is a school, a club, an association or an organisation representing affiliated
clubs or constituent associations.
1.40 Sport: sports passes
i. The sale of sports passes to students to provide them access to the University’s sports
facilities is exempt for VAT purposes. The sale of passes to staff is only exempt as long as
there is some kind of membership charge. The sale of passes to the general public and
corporations is a Vatable supply and VAT should be charged at the standard rate. If other
services such as sports injury massage are sold then these are also deemed to be a VATable
supply.
1.41 Staff
i. The supply of staff is taxable at the standard rate. The University makes a supply of staff
for VAT purposes if it provides, to another body, the use of an individual who is
contractually employed by the University. This classification applies whether the terms of
the individual’s employment with the University are set out in a formal contract or letter of
employment. The determining factor is that the staff are not contractually employed by the
recipient company, but come under the direction of that company.
ii. The supply is taxable even if the University is just recharging the costs which it has
incurred such as gross pay, national insurance and employer’s pension contribution.
iii. If the recipient of the supply pays them their salary direct, or meets the employer’s
obligation to make payments to third parties, e.g. PAYE, national insurance or pension
contributions, VAT is not chargeable on those amounts, but the University must still account
for any payments that the recipient makes direct to it.
iv. These rules apply regardless of whether the member of staff is employed full or part‐
time.
1.42 Student placements
i. Any charge to a business, made by the University for a student industrial/work placement,
is taxable at the standard rate.
1.43 Tax invoices
i. A tax invoice must be issued whenever VAT is charged, provided that the supplier is
registered for VAT and the value of the invoice is more than £100 (including VAT). From
01/01/04 a valid VAT Invoice must show the following:
• an invoice number;
• the time of supply (tax point);
• date of issue (if different to the time of supply)
• the supplier’s name, address and their VAT registration number;
• the customer’s name and address;
• the type of supply, e.g. sale, lease, rental, sale or return, process;
• a description of the goods / services supplied For each description, the supplier must
show:
• quantity of goods or extent of supply;
• the total charge made excluding VAT;
• the rate of VAT;
• rate of any cash discount offered;
• each rate of VAT charged and the amount of VAT charged at each
rate and shown in sterling; and
• total VAT charged.
ii. If the charge for a supply is £100 or less then a less detailed tax invoice can be issued,
which must include the supplier’s name, address and VAT registration number, the time of
supply, goods and services supplied, the total amount payable including the VAT and VAT
rate charged.
iii. The following are not acceptable to HM Revenue and Customs as invoices and VAT
recovery can be disallowed by Inspectors. These include:‐
• Photocopies
• Fax copies
• Statements
1.44 Tax point
i. The basic tax point is the date when the goods are sent or made available to the customer
or the service is performed. The University is normally required to issue a tax invoice to the
customer within 14 days of the tax point.
1.45 Telephones
i. If the University recharges the cost of telephone calls, line rental costs or
telecommunication services to an external body, which uses the University’s telephone
system, then the recharge is taxable.
1.46 Vocational training
i . Supplies of vocational training made by the University are VAT exempt. Vocational
training covers training, re‐training and the provision of work experience. It includes
courses, conferences, lectures, workshops and seminars designed to prepare those
attending for future employment or add to their knowledge in order to improve their
performance in their current work.
APPENDIX A
CHARITY ADVERTISING Request for Zero-Rating
PART 1 - to be completed by the charity
APPENDIX B
This certificate has the force of law.
Certificate for zero-rated and reduced-rated building work.
1. Address of the building:
2. Name and address of organisation receiving the building work:
VAT Registration number (if registered):
Charity registration (if registered):
3. Date of completion (or estimated date of completion) of
the work:
Value (or estimated value) of the supply: £
Name, address and VAT registration number of building contractor:
4. I have read the relevant parts of Notice 708 Buildings and construction and certify that this
organisation (in conjunction with any other organisation where applicable) will use the
building, or the part of the building, for which zero-rating or reduced-rating is being sought
solely for (tick as appropriate ):
a relevant charitable purpose, namely by a charity in either or both of the following ways:
otherwise than in the course or furtherance of business or
as a village hall or similarly in providing social or recreational facilities for a local
community
a relevant residential purpose, namely as:
(a) a home or other institution providing residential accommodation for children
(b) a home or other institution providing residential accommodation with personal care for
persons in need of personal care by reason of old age, disablement, past or present
dependence on alcohol or drugs or past or present mental disorder
a hospice
residential accommodation for students or school pupils
residential accommodation for members of any of the armed forces
a monastery, nunnery or similar establishment or
an institution which is the sole or main residence of at least 90 per cent of its residents
and will not be used as a hospital, prison or similar institution or an hotel, inn or similar
establishment.
5. I certify that:


the information given is complete and accurate; and
if the building, or a part of the building, for which zero-rated supplies have been
obtained, is let or otherwise used for a purpose which is not solely for a relevant
residential purpose or relevant charitable purpose within a period of 10 years from the
date of its completion, a taxable supply will have been made, and this organisation
will account for tax at the standard rate.
Name (print):
Position held:
Date:
Signed:
General warning
1. HMRC reserves the right to alter the format of the certificate through the publication of a
new notice. You must ensure that the certificate used is current at the time of issue.
Warnings for the issuer
2. You may be liable to a penalty if you issue a false certificate.
3. You are responsible for the information provided on the completed certificate.
Warnings for the developer
4. You must take all reasonable steps to check the validity of the declaration given to you on
this certificate.
5. You must check that you meet all the conditions for zero-rating or reduced-rating your
supply – see Notice 708 Buildings and construction.
APPENDIX C
Certificate A
PURCHASE BY AN ELIGIBLE BODY OF MEDICAL, SCIENTIFIC
OR VETERINARY ETC. EQUIPMENT
PART 1 - to be completed by the purchaser
I ............................................................................................................................. ...............................................(full name)
............................................................................................................................. ...............................(status in organisation)
of...................................................................................................................................... (name and address of oganisation)
which is:
[tick boxes as appropriate]
a Health Authority or Special Health Authority in England or Wales
a Health Board in Scotland
a Health and Social Services Board in Northern Ireland
a hospital whose activities are not carried on for profit
a research institution whose activities are not carried on for profit
a charitable institution providing care or medical or surgical treatment for
handicapped persons
the Common Services Agency for the Scottish Health Service
the Northern Ireland Central Services Agency for Health & Social
Services
the Isle of Man Health Services Board
a charitable institution providing rescue or first-aid services
a National Health Service trust established under Part I of the National
Health Service and Community Care Act 1990 or the National Health
Service (Scotland) Act 1978
declare that the above named organisation is buying
or hiring
from:
............................................................................................... (name and address of
.................................................................................................................. supplier)
the following:
............................................................................................... (description of goods
.............................................................................................................. or services)
............................................................................................................................. ..
...............................................................................................................................
which I believe are:
medical equipment
sterilising equipment
scientific equipment
laboratory equipment
computer equipment
refrigeration equipment
video equipment
parts or accessories of the equipment indicated above
repairs or maintenance of the equipment indicated above
and is paying for this supply with funds provided entirely by a charity or from
voluntary contributions.
I also declare that the goods are to be used in:
medical research
medical training
medical diagnosis
medical treatment
veterinary research
veterinary training
veterinary diagnosis
veterinary treatment
I have read the guidance in the Customs and Excise VAT Notice 701/6 and
apply for zero-rating of the supply under Group 15, items 5 or 6 of the zerorate
Schedule to the VAT Act 1994.
..........................................................................................(signature and date)
********************************
The production of this certificate does not authorise the zero-rating of the
supply. It is the suppliers responsibility to ensure that the goods/services
supplied are eligible before zero-rating them.
********************************
PART 2 - for use by the supplier
I have read the guidance in Customs and Excise VAT Notice 701/6 and agree
that the goods/services supplied come within the category indicated above (or
come within the alternative eligible category of ..............................................
..................................... equipment).
..........................................................................................(signature and date)
Notes (eg any steps taken to verify the declared particulars)
APPENDIX D
Research activity and its VAT liability flowchart :ACTIVITY
1.
2.
3.
4.
EXPERIMENTAL DEVELOPMENT
WIDENING OF GENERAL UNDERSTANDING
DISCOVERING A CURE OR IMPROVING
EFFICACY OF EXISTING REMEDIES
CASE AWARDS
RESEARCH
ELIGIBLE BODY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
UNIVERSITY
SCHOOL OR COLLEGE
GOVERNMENT DEPTS
NHS TRUSTS
HEALTH AUTHORITIES
LOCAL AUTHORITIES
GOVERNMENT AGENCIES
RESEARCH COUNCILS
ELIGIBLE CHARITABLE BODIES
EUR0PEAN COMMISSION
1.
2.
3.
4.
5.
ROUTINE TESTING
ANALYSIS OF MATERIALS ETC
SOLUTIONS OF PARTICULAR LOCAL PROBLEMS
SURVEYS OF INCIDENCE OF DISEASE ETC
QUANTITATIVE ADDITIONS TO HUMAN KNOWLEDGE
CONSULTANCY
NON-ELIGIBLE
BODY
1. COMMERCIAL SPONSORS
VAT
VAT
EXEMPT
STANDARD
RATE
Note: Although examination services and bench fees are not research, the same rules apply
APPENDIX E