Income/Sales

Most University income is either exempt from VAT (e.g. student tuition fees, student accommodation and student catering), or outside the scope of VAT (e.g. grant income). However, any income where the University provides something in return to the customer (eg consultancy, or research where intellectual property (IP) becomes the funder's property) may be liable for VAT, particularly where the customer is also based in the UK.

We generally don't charge VAT on supplies made to customers outside the UK, unless those customers are private individuals or a charity, government department or other body which has no business activities, in which case VAT may be applicable.

VAT recovery depends on the income stream.

Output Tax (Income)

You should assume University income is subject to 20% Standard Rate VAT unless there is a legislative reason why it shouldn’t be VAT’able

The VAT code is determined by the nature of what we are charging for.

Consultancy (see below)	Taxable - rate S
Education	Exempt - rate X
Catering closely related to provision of education	Exempt - rate X
Student accommodation closely related to provision of education	Exempt - rate X
Sale of books	Taxable - zero rate Z
Research for a commercial sponsor	Taxable - rate S
Donation	Outside scope - OS
Grant funding received from a not-for-profit organisation	Outside scope - OS
Catering/accommodation (staff/public)	Taxable - rate S

Consultancy/Supplies of Staff/Services Rendered/Sale of Equipment (UK)

All forms of consultancy are taxable at the standard rate if the supply is delivered in the UK, this includes all incidental expenses. VAT on associated expenditure is fully reclaimable.