VAT FAQ

• Do the goods qualify for Med/Vet relief?
• Is the correct purchase category code being used?
• Is the intended use for the project/GL code set as Med/Vet?
  • No – if you think your project qualifies for Med/Vet relief, please contact the Tax team.
• Is this the first purchase with the supplier?
  • Yes – the first purchase for a new supplier will always return standard rated VAT in Oracle, please amend the VAT at the PO stage.

If you think a supplier catalogue item is incorrectly mapped to a purchasing category please contact the Tax team with details of the item and the category code. We will then confirm what the VAT treatment should be and get the mapping corrected. 

If you think a product qualifies for the medical exempt VAT relief, please check with the Tax team to see if this item can be assigned a purchase category code that is mapped to zero rated VAT.

Details to provide the Tax team:

• what is the item and what it is typically used for
• what purchase category code the item has currently been assigned to

Catalogue codes with "other" in the description will always return standard rated VAT. Please check that you have selected the correct code.

For Med/Vet intended use to be applied to a project and the retrieve certain qualifying purchases with zero rated VAT, please email the Tax team with a short explanation of what the project is for, the work involved and the desired outcomes of the project.

Please supply the Tax team with the main funding agreement and the contract with the collaborator. Was the collaborator communicated to Research Accounts on the original set-up request?

Please always send the Tax team a copy of the contract so we can confirm the project is indeed ODA/GCRF/FCDO (Foreign, Commonwealth & Development Office). This is to make sure the project is eligible for reverse charge VAT not to be applied.

The category code to use for these projects checked with the Tax team is 703.7039 - Consultancy UK Government funded Overseas Aid Projects.

Please fill in the VAT correction form template and send to the Tax team with supporting documentation e.g. invoices. This correction form can be used for the GL and Projects.

Corrections must be over £100 VAT cost per line.

We may ask for further information to set the VAT recovery for your department’s cost centres. We like to confirm if and how much business and non-business activity relates to the cost centre as this could make a difference with the VAT recovery. To have your cost centre set up promptly please could you ensure this information is provided.

For SRF cost centres please fill in the SRF tax status form to accompany the Cost Centre form.

If you think the activity has changed for your cost centre please email the Tax team what the activity is for the cost centre so we can review the VAT recovery.

You may be required to complete and return the VAT correction form template to amend any previous errors. 

Please let the Tax team know the supplier name and supplier number so we can check the supplier’s Oracle Tax profile in a prompt manner.

Please check that the project has been set to non-funded irrecoverable. This will ensure the VAT is moved from the project to the department as a cost.

If the project has been setup correctly then we may ask you to complete and return the VAT correction form template in order to remove the VAT.