The thing about VAT is that the supplier is responsible for collecting it.
You can do all you want / are able to do to persuade them to apply to their
local VAT office to zero rate something but unless they have clear permission
in writing from their VAT office as to what conditions they must meet to zero
rate (or apply some other lower than 17.5% rate) they will be invoicing
inclusive of VAT and you will have to pay it.
Local VAT offices vary in their interpretation of the rules but what they say
goes unless you can get a 'higher authority' to rule otherwise.
However, you can shop around for suppliers whose VAT office is friendlier.
Some suppliers in the DSA field are able to apply different rules because
their local office is more enlightened.
If a 'donor' is purchasing and owning the equipment they will usually be
registered to VAT and can reclaim it anyway. They may also be able to write
it off against their corporation tax. It sounds like you situation is
complicated by who owns the equipment. This is a situation many LEAs have
encountered over purchasing equipment for DSA students and why they continue
to give them cheques instead of buying the equipment from the recommended
supplier themselves.
Michael Trott
UKASSESSMENTS
PO Box 1
Inkberrow
Worcs WR7 4EH
Tel 01386 792617
FAX 01386 793842
Mobile 0794 155 2181
Email [log in to unmask]
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