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CH: Can a PTA or school recover VAT on purchases?

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  • koru
    koru Posts: 1,546 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    JasonLVC wrote: »
    The sale of a computer, if the seller is VAT registered, would be standard rated (17.5%) regardless of whom it is being sold to. So if the school is selling a computer to the PTA it would have VAT on.

    Schools which are raising invoices with no VAT on are at risk of assessment from HMRC.
    So, it would be better for there not to be an invoice from the school to the PTA, so as to avoid giving any (mistaken) impression that the school is making a VATable supply. The school is not supplying the computer to the PTA; the school is using funds donated by the PTA to buy its own computers. The HMRC document linked to earlier in this thread makes it clear that the school CAN recover the VAT in such circumstances. As long as you do nothing to suggest that the school is supplying the goods to another body, I do not see that there is any significant doubt.
    koru
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