V5.162C VAT refunds for academies

V5.162C VAT refunds for academies

With effect from 1 April 2011, academies are able to recover VAT on costs which are incurred to support their non-business activities (primarily the provision of free education). This is to ensure that academies are treated for VAT purposes in the same way as schools which are controlled by local authorities.

Conditions for VAT refund

HMRC shall make a refund of VAT (other than any which is blocked by an order made under VATA 1994, s 25(7)) charged on the supply of goods or services to, or the acquisition or importation of goods by, the proprietor of an academy acting in that capacity, where1:


    •     the supply, acquisition or importation is not for the purpose of any business carried on by the proprietor of the academy


    •     the supply, acquisition or importation takes place on or after 1 April 2011


    •     a claim is made in a form determined by HMRC, and


    •     the claim is made before the end of a four-year period beginning with the day on which the supply is made or the acquisition or importation takes place, or such shorter period beginning on that day as HMRC may determine

Where it is not possible conveniently to distinguish between goods or services attributable to business and non-business activities, the amount to be refunded shall be such amount as remains after deducting from the VAT relating to the claim such VAT as appears to HMRC to be attributable to the carrying on of the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial