VAT for Universities
University of Bradford VAT number: 68 6548 68
The supply of Education, Research (to an eligible body), and Vocational Training are exempt from VAT.
Eligible bodies for research purposes include: schools, universities and colleges,
most educational charities, government departments and executive agencies, local authorities, health authorities and non-profit making bodies carrying out essential public duties.
This means that the University does not charge VAT on sales invoices
It also means as a general rule we cannot reclaim VAT on supplier invoices where attributable to exempt supplies.
VAT can be recovered against research for non-eligible body e.g. commercial organisations, trading activities such as shop sales and private telephone scheme.
There are 4 ways in which VAT impacts on the University:
- Standard - products subject to VAT at 17.5% (current UK rate). Lower rates are applicable to gas and utility supplies.
2. Zero Rated - VAT applies at a rate of zero. This rate covers books, certain food products, construction of buildings, international services, transport, drugs, medicines, aids for the disabled, imports and exports, charities, insurance and postal services.
- Special application to zero rate (apply for exemption) - goods qualifying for special relief include: Supplies of advertising, stationery and printed matter,
and by certificate issued at the time of order (example attached) medical and scientific equipment, and adaptations to buildings for the benefit of the disabled.
Overseas Purchases
VAT will be payable in the UK on:
1) Professional services purchased from the EU or elsewhere around the world.
2) Computer goods, maintenance or services worldwide.
These rules are to ensure fair competition between suppliers from abroad and the UK.
EU Suppliers - the VAT is paid to Customs on our quarterly VAT return. It is termed acquisition VAT. To ensure VAT is not paid in the supplier country it is necessary to give the EU supplier our VAT number when placing the order.
Suppliers outside the EU - the importer will pay the VAT when the goods enter the country. This is termed import tax. The importer then invoices the University for the VAT and customs duty as applicable.
Tracy Spencer- Tel: (23) 3128
08/10/2010