VAT guidance for researchers

It is important that the Trust reclaim VAT on contracted-out services. VAT paid for goods and services can potentially be reclaimed from HMRC by the Trust. In order to maximise the opportunity for VAT recovery, please see the following guidance:
  1. Ensure a valid tax invoice is received:
    1. If the invoice value is higher than £250 then it must  include:
      1. Supplier Name and Address
      2. Supplier VAT registration number
      3. CUH name and address
      4. Date of invoice
      5. Date of supply / tax point
      6. Invoice number
      7. Reasonable description of the item being invoiced
      8. Rate and quantity of each item chargeable excluding VAT
      9. Total amount being invoiced excluding VAT
      10. Rate of VAT applicable and total VAT charged
    2. If the invoice is for a value lower than £250 then a simplified tax invoice can be issued. This should include:
      1. Tax point (Date)
      2. Supplier name & address
      3. VAT registration number
      4. Goods description
      5. Gross value
  2. Catering:
    1. VAT is not recoverable on individual items (tea, coffee, etc.) but the catering service itself is recoverable
    2. In order for VAT to be recoverable, catering must be for a specific NHS-related purpose or event
    3. Room hire is not VAT recoverable unless it is part of a catering service
  3. Agency staff:
    1. VAT is recoverable on agency nurses, HCAs, ODPs but not care assistants, AHPs or doctors
  4. Training:
    1. VAT is recoverable when training is provided by:
      1. Commercial company
      2. Professional body
      3. Online
      4. Charities
    2. VAT should not be charged when training is provided by:
      1. University
      2. College
      3. Other NHS
      4. Local Authority
      5. Government departments
      6. Private individuals
    3. No scope for VAT recovery for training provided overseas
  5. Other points:
    1. No NHS Trust should ever charge another VAT
    2. Heading 74 of HMRC Guidance 9700 specifically covers VAT recovery for research purposes
  6. Five basic rules on VAT recovery for contracted-out services:
    1. Has to be a service
    2. Service has to be on the Contracted-Out Services
    3. Have to be able to do the service in-house
    4. Use of building must be NHS
    5. VAT for the current tax year must be recovered by 31 July the following year