VAT on Vocational Training Courses supplied to a Charity Org?

VAT on Vocational Training Courses supplied to...

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Hi All,

Just wanted some help over the following issue: 

We are a social care training provider and offer care-related training courses to our clients are Care Homes as well as some to Charity Organisations. 

Please note that as a training provider we do not fall under the category of 'eligible body'

When invoicing the care homes i believe they would be charged for VAT @ Standard rate. 

However, for the charity orgs, i believe we shouldn't be charging them VAT (zero rated) on our invoices. 

Please correct me if I am wrong. 

Replies (3)

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chips_at_mattersey
By Les Howard
27th Jan 2015 16:10

Vocational Training is VAT exempt when delivered by an eligible body. Exemption also applies when a company provides training under a Government funded scheme. Apart from that your supplies would seem to be taxable. I don't know why they could be zero rated. Have the charities receiving your services highlighted any legislation that provides for zero rating?

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Replying to weuk:
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By Ashvin
29th Jan 2015 14:35

Hi Leshoward, 

Hi Leshoward, 

My apologies for the late reply. 

Actually these charities are our new clients. At this point, they haven't told us anything whether they usually pay VAT on care-related training which are given to their care staffs. 

I thought because they are charities, they don't pay VAT on some goods and services. 

But when i went through the guidelines of HMRC, it is not clear enough whether the services that we sell should be VAT exempted to charities. 

From your experience, what would be the implications if we charge them VAT when we should not have done it?

Thanks for your help. 

 

 

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chips_at_mattersey
By Les Howard
29th Jan 2015 15:52

Charity recepient

In most case it is the responsibility of the charity to highlight any provisions that allow them not to pay VAT on goods or services that they receive. Usually this means providing a formal certificate to that end. I would therefore indicate at an early stage that VAT will be payable, and wait for their response. (Don't wait until after you have delivered the courses!)

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