Introduction to VAT

It is the responsibility of Heads of Departments to ensure that their Department accounts correctly for VAT and, where appropriate, corporation tax¹.

The aim of this guidance is to give a brief overview of Value Added Tax (VAT) and how it works, followed by a more in depth look at how VAT applies to the University. This will include the following topics:

• VAT on income and choosing the correct tax rate to apply to income received;
• What purchases are liable to VAT and what will not have a VAT charge; and
• Transactions involving overseas customers and suppliers.

The guidance also covers other tax issues including:

• Duty charges on imports and exemptions from duty;
• Corporation tax issues; and
• Gift Aid on Donations.

If you have a query that is not covered by this guidance the University Tax Team [1] will be happy to deal with issues by telephone or e-mail.

Changes from May 2023

12 May 2023: Appendix F Emergency Medical exemption certificate [2] updated to include computer software and licences, plus statement at end of certificate
17 May 2023 - Appendix G Good eligible for Medical Exemption [3], lab animals added to permitted exemptions

¹Financial Regulations 2012, regulation 12.1