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Independent school: PTA income & VAT

Should VAT be charged?

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Independent school has a uniform shop run by the PTA - basically second hand uniforms that have been gifted by departing pupils to be made available for purchase.

The sale of school uniforms by an independent school is standard rated if they're for over 14 year olds. However, can the PTA (not separately VAT-registered) be regarded as a separate entity from the school? It doesn't have a separate bank account - all income and expenditure is handled through the school bank account and posted to a PTA liability account on the balance sheet. Amounts donated to the school from the PTA are journalled across to donations from this account.

No VAT has ever been declared on these sales.

Replies (9)

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By jonharris999
21st Oct 2020 07:54

How is the PTA constituted?

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By paul.benny
21st Oct 2020 08:11

That's key. If it's not clearly constituted as a separate body, it will be difficult to argue that the PTA is not just a trading style of the school.

The lack of a separate bank account is not conclusive but suggests that it's not a separate body.

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By the_drookit_dug
21st Oct 2020 08:33

I'd suggest getting one drawn up, these arrangements are often historic with nothing formal in place.

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By paul.benny
21st Oct 2020 09:17

That would have a distinct whiff of trying to create facts after the event.

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By the_drookit_dug
21st Oct 2020 09:48

What about going forward though? Sure, pay over anything that's due for prior periods.

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By paul.benny
21st Oct 2020 10:52

Agree.

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chips_at_mattersey
By Les Howard
21st Oct 2020 12:28

Is the independent school a charity? If so, sales of donated goods are zero-rated.

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By Silvery Waves
21st Oct 2020 12:46

Yes!

Wow, thanks for making me aware of that gem.

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By Cheshire
21st Oct 2020 19:26

Les is a little gem!!!

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