VAT Registration

VAT Registration

Didn't find your answer?

Wondered if anyone could help me out if possible.

I am trying to identify whether there is a listing of industries or organisations (types) who are unable to reclaim VAT which they may have paid for products or services in the UK?

I would be grateful for any help and assistance with this matter.

Also is there anything in the HMRC website which will help in this search for information?

Best wishes

Mike

Replies (5)

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Scalloway Castle
By scalloway
02nd May 2012 22:27

Taxable Supplies

To reclaim VAT you must be making taxable supplies. Some business are exempt for VAT

http://www.hmrc.gov.uk/vat/forms-rates/rates/rates.htm#5

Charities are the area I am most familiar with. They use donations and grants to provide goods and services so cannot reclaim VAT.

 

 

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Replying to johnjenkins:
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By mikepower10
03rd May 2012 10:55

Many thanks for this.

 

Do you know if this just covers schools or does it include colleges, universities and other areas of higher education.

Also does it include parts of the NHS and Health Trusts etc?

Best wishes,

 

Mike

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By Figurate
03rd May 2012 15:44

Exempt/Out of Scope and ESCs

Hi Mike

Generally, if the organisation is carrying out an exempt activity, then it can't reclaim the VAT relating to that activity. http://www.hmrc.gov.uk/vat/forms-rates/rates/trade-sectors.htm  gives a very general overview of the sectors that might have special VAT rules.

However, even in the NHS and Local Authorities (the areas I'm most familiar with) not all of their activity is VAT exempt.  Also, much of the NHS also operates under the "Contracted Out Services" extra statutory concession, just to further complicate matters.

State schools generally come under their local authority for VAT purposes, but obviously most of their activities are educational and out of scope for VAT.

Universities are another whole VAT area unto themselves, but much of their input VAT is irrecoverable.

Louise

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Replying to Anonymous123:
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By mikepower10
03rd May 2012 13:32

Louise,

I have a client based in Jersey who is looking to send print materials to companies and organisations in the UK. Clearly the company in Jersey is not VAT registered and that VAT is non applicable on items shipped into the UK. So long as the item(s) have no commercial value then would they be able to sell the print items to colleges, schools, health trusts, hospital trusts etc in the UK minus the VAT charge?

Hope you can help out as this is not my area of specialism.

Best wishes,

Mike

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By Figurate
03rd May 2012 15:44

Not registered?

If your client isn't registered for UK VAT, then they aren't going to be able to charge UK VAT.

Also, if the goods are zero-rated for VAT, then there won't be any VAT payable on import.  (You might need to check the exact nature of your client's goods - most, but not all, printed matter is zero-rated).

Have a look at this, to see if it would be zero-rated:

http://www.hmrc.gov.uk/manuals/vbooksmanual/Index.htm (which covers what items are eligible here: http://www.hmrc.gov.uk/manuals/vbooksmanual/VBOOKS3000.htm )

 and as some background (as I appreciate, your client won't be the ones doing the actual importing):

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&id=HMCE_CL_000054#P45_4022 

Louise

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