Value added tax (VAT)
Information about VAT at York including our VAT number, which codes to use on invoices and the rates we are subject to.
Details for reference
- The University’s VAT registration number: GB 647 2055 41
- The Economic Operator Registration and Identification (EORI) scheme number is GB647205541000 and may be required where we're mainly importing goods
- The University Tax Policy (MS Word
, 33kb)
Purchasing
| VAT Code | Circumstance |
|---|---|
| P1 | UK suppliers with 20% VAT |
| P2 | UK suppliers with 5% VAT |
| P3 | Medical research supplies |
| P4 | UK suppliers not VAT registered or with 0% VAT |
Please note: we are still liable to pay VAT on goods or services bought from outside the UK; we don't avoid UK VAT by buying from suppliers outside the UK. The VAT code on the invoice for suppliers outside the UK is O1. The VAT on these purchases is called "reverse charge VAT" and is added to the same code as the invoice by staff in Finance. Purchases from outside the UK may also be liable to customs duty.
- As a charity, the University's purchases of certain equipment and some consumables to be used for medical research may qualify for zero rating (often wrongly called "VAT exempt purchases"). Funds to buy the equipment must come from charitable sources (so nearly all of the University's funding qualifies) and the extent of their use for medical research must be, in HMRC's terms, "substantial, real and continuing" - most universities regard "substantial" as meaning more than 50%.
- Zero rating certificates are required by the supplier and are, in effect, an application by us for the supplier to consider zero rating. We have no automatic right to zero rating and there are penalties for misuse of these certificates.
- The University is also entitled to zero rating relief on buying certain advertising services.
- Most of the University's income is either exempt from VAT (eg student tuition fees, student accommodation and student catering), or outside the scope of VAT (eg grant income).
- However, any income where the University provides something in return to the customer (eg consultancy, or research where IP becomes the funder's property) may be liable for VAT, particularly where the customer is also based in the UK.
- We generally don't charge VAT on supplies made to customers outside the UK, unless those customers are private individuals or another body which has no business activities, in which case VAT may be applicable.
- The University and several of it subsidiary companies are formed together in a VAT group. These subsidiary companies are PCMIS Ltd, York Commercial Ltd, York Health Economics Consortium Ltd, York Science Park Ltd, SAP3, Biorenewables Development Company and York Sports Village LLP. VAT does not apply to any transactions between members of the VAT Group.
- Also, within the University, VAT does not apply to any transactions between any departments.
- We can recover the VAT (input VAT) we incur on our costs when we charge VAT (output VAT) to a customer for work done for them, as long as there is also a "direct and immediate link" between the two transactions.
- We may also be able to recover VAT where we don't charge VAT because the customer is outside the UK, if the supply to that customer is one which would be subject to VAT in the UK - eg consultancy.
- At the end of each quarter (in January, April, July and October) the University submits a VAT Return to HMRC, where we aggregate all the output VAT we have charged and deduct all the input VAT we've incurred, where we have a right to deduct that VAT, and pay the net amount to HMRC.
USA entities making payments to the University may require you to supply them with a copy of "Form W-8BEN-E", without which they are obliged to deduct US withholding tax. A signed form can be obtained from Tracey Issott-Parker.
This guide gives you further information on the VAT codes to use when raising sales invoices: Sales VAT codes for use within the 四虎影院 and subsidiaries (MS Word , 18kb)