Can I point out to list users that the origin of the extract of the Customs
and Excise letter circulated by St.John at Bedfordshire LEA was the result
of a protracted discussion between our Access Centre, the OU's Finance
Division and the OU's auditors Price Waterhouse Cooper.

We like other Access Centres assumed needs assessments were either VAT
exempt or zero rated based on established practice, NFAC advice and our own
reading of the VAT regulations. Out of the blue, I was informed by PWC that
they didn't agree. I then sought evidence from the NFAC to support the
current practice of not charging VAT on needs assessments, duly received
something from CCPD and passed it on to our Finance people. The outcome is
what was circulated ie advice from one C & E office that standard rate VAT
should apply, endorsed by PWC's own interpretation of that advice and of VAT
legislation. We were then left in no doubt by our own institution that we
should include standard rate VAT in needs assessment invoices to LEAS and
that is what we started doing about a month ago.

There is also the issue of whether VAT should be paid for needs assessments
done for the students of the HEI of which the AC is part. The advice from
PWC is that they think these are VAT exempt but I am waiting for an official
ruling

The average human brain ie mine, is not yet sufficiently equipped by
evolution to penetrate the mysteries of VAT. I'm happy to leave it to the
so-called experts and responsible bodies to sort out as long as what is
decided does not adversely affect the service provided to students or our
income. This apparently being so...I leave the debating chamber to those
fascinated by this intoxicating subject

Ralph Keats
Head of CATER
The OU

-----Original Message-----
From: Steven Metcalfe [mailto:[log in to unmask]]
Sent: 18 March 2003 14:49
To: [log in to unmask]
Subject: Re: VAT on Needs Assessments


I would have thought that the "assessment" was an assessment as to the
appropriateness of various communication aids as well as other equipment and
services needed to support a disabled student's education. The service of
providing an assessment of a disabled student's educational support needs is
a service specifically designed for that purpose only delivered to people
with disabilities. One would assume therefore, that it should be zero rated
for VAT, as the VAT regulations permit for goods and services designed
specifically for disabled people to be so! Do you have an over zealous VAT
office in your area, with an officer looking for brownie points? Forget the
extra revenue for the war effort, give him something to take his mind off
taxing DSAs and send him to the front!

On a related matter, have any access technology trainers out there had the
VAT man asking them to charge vat?

Steve.

On 18 Mar 2003, at 12:14, Skeates,St.John DEAL Awards T wrote:

> The following is taken from a letter from HM Customs and Excise
> regarding VAT on Needs Assessments:
>
> "We see the assessment of persons applying for Disabled Students
> Allowance as more of a physical assessment with a view to advising
> them on the various types of equipment and facilities to assist them
> with their studies. This supply would seem to fall within counselling
> and advisory services and are therefore taxable.
>
> It is not considered to be an assessment in terms of an examination
> and the assessments referred to under VAT Act 1994, Schedule 9, Item 3
> and Note 4 are where there are specific criteria against which the
> assessment is made in order to achieve the required standard for the
> qualification eq NVQ style qualifications."
>
> So it appears to be case closed - Needs Assessments are not exempt
> from VAT. However I am curious as to why this suddenly seems to have
> become an issue. Extra revenue for the war effort perhaps...
>
> St.John Skeates
> Awards Section
> Bedfordshire County Council
> Direct Line 01234 718744
>
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Steve Metcalfe
Head of Disability Access Resources and Technology
Director National Association of Disability Officers
University of Lincoln

Tel: 01522 886400
Fax: 01522 886489
Minicom: 01482 463571
E-mail [log in to unmask]