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.
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Replies (9)
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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.
I'd suggest getting one drawn up, these arrangements are often historic with nothing formal in place.
