V16.1016 VAT—supplies of research between eligible bodies
Information Sheet 11/13, July 2013
This Information Sheet is intended to provide some additional guidance on when the provision of research between eligible bodies may still be treated as exempt from VAT following the withdrawal of the VAT exemption for research, as explained in Revenue & Customs Brief 21/13. It also details the transitional arrangements that will apply following the withdrawal of the exemption on 1 August 2013.
1.1 Who should read this Information Sheet?
Those eligible bodies that undertake research and those that commission research.
This Information Sheet should be read in conjunction with Revenue & Customs Briefs 10/13 (VAT: withdrawal of the VAT exemption for supplies of research between eligible bodies – consultation update) (RCB/10/13, Division V16.3) and 21/13 (VAT: withdrawal of the VAT exemption for supplies of research between eligible bodies – announcement on transitional arrangements) (RCB/21/13, Division V16.3).
1.2 What are eligible bodies?
Eligible bodies are defined in VATA 1994 Sch 9, Group 6, Note (1) and include schools, UK universities or a college of a university, an institution falling within the Further and Higher Education Acts, a public body such as a government department or a local authority, or a non-profit making body such as a charity.
2 The current VAT treatment and the changes being made
A supply of “business” research between eligible bodies is exempt from VAT and “non-business” research is outside the scope of VAT (see below for a further explanation of the distinction between these two types of research).
The VAT exemption