Vat Recovery for Devon County Council VA Schools

The Council has recently had a site visit from HM Revenue and Customs and as part of that visit they looked at sample of invoices to check whether VAT had been reclaimed correctly or not. Unfortunately, included within that sample was a payment for a capital scheme in a VA school where some VAT on that scheme had been incorrectly recovered and over recovery of VAT could lead to penalties and interest being charged by HMRC.

We would therefore like to remind all VA schools of the guidance available regarding recovery of VAT. Attached is an extract from the HMRC Guidance which includes a flowchart and examples to help with deciding whether VAT can be recovered or not. The full Guidance note can be found on the VAT pages on the Source.

If you are in any doubt about whether VAT can be recovered or not or if you have any other queries on VAT, please do not hesitate to contact Mike or Karen in the VAT Team on 01392 382842 / 01392 382410 or email the VAT Team.

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