I act for a branch of a well known national animal charity. Their offerings are i) kennels/cattery etc, ii) sale of rescued animals, iii) a heavily subsidised vet clinic and as such prepare their VAT Returns on a partial exemption basis.
Their VAT treatment has been carried over from the previous accountants and a question from the client has made me doubt how it has been done.
Re the clinic, the vet that they use bills them for hours & drugs used, on which the VAT is claimed. No VAT is deducted from the income received by the clinic, but shouldn't they be charging VAT on the drugs?