Governance & Compliance 31: Scholastics Book Fair – VAT On Rewards

This is a quick reminder to all schools to please notify the VAT team if your school has hosted a book fair for Scholastics.

As a thank you for hosting the event, Scholastics will allocate your school a reward which the school can then encash for books.  Although the reward is ultimately received in the form of books (which are zero rated), the reward is regarded by HMRC as vatable commission and VAT must be accounted for.

As you will not receive the reward in cash, the only way that you can account for the VAT is via the VAT team who will pay HMRC by VAT journal.

I understand that the current procedure is for Scholastics to send through a Cash Report Form after each book fair which will identify the value of the rewards in box 8 on the form.  Upon receipt, please scan the Cash Report Form to the VAT team using our mailbox vat@devon.gov.uk together with a note of your school code and we will pay the VAT on the reward to HMRC from your school code, using the ledger code for commission which is currently 9303.

If you have any questions about this, please feel free to contact the VAT team and we shall be happy to help.

Sarah Davis
VAT Officer

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