Commentary

RCB/34/08 VAT—partial exemption—retrospective claims for input tax by higher education institutions (HEIs)

Part V16 Forms and other HMRC material

RCB/34/08 VAT—partial exemption—retrospective claims for input tax by higher education institutions (HEIs)

RCB/34/08 VAT—partial exemption—retrospective claims for input tax by higher education institutions (HEIs)

Revenue & Customs Brief, Issue 34. 24 July 2008

This Revenue & Customs brief article sets out HM Revenue & Customs (HMRC) policy on retrospective claims by Higher Education Institutions (HEIs) that operated a Partial Exemption (PE) method agreed under the Committee of Vice Chancellors & Principals (CVCP) guidelines. This article takes account of the Tribunal decision in the cases of Wadham College Oxford & Merton College Oxford [VTD 20233]. It uses a number of specialist terms that are fully explained in Notice 706 “Partial Exemption” (Part V8).

Background

Prior to 1997, when the CVCP guidelines were withdrawn, amany HEIs chose to determine their recoverable input tax using a simplified partial exemption method described in the guidelines as the CVCP method. Recoverable input tax was calculated as a fixed percentage of the output tax payable on certain taxable supplies (known as tunnelled supplies). For some HEIs, the

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