When the University receives income from a sponsor for research the money should be allocated to a specific research grant and routed through the Research Operations Office. Income in relation to other types of grants may be paid direct into a departmental account.

If the income is not for the purposes of research the same principles will apply as for donations/contributions, and any benefits must be determined in order to work out the VAT rate to apply.

If the grant is a 'research grant' the VAT liability will be determined by the Research Operations Office and set up accordingly in the research grant module on the CUFS system. Invoices to request payment for research grants are dealt with directly by the Research Operations Office.

Further guidance is available in chapter 14 of the Financial Procedure Manual: Accounting for Donations & Grant Income. [1]