The Tax Team website is designed to provide you with further information on common aspects of VAT and taxation within the University as well as providing the forms and certificates that are often required.
The University is a charity, a status which provides shelter from certain direct taxes when considering its primary purpose activities, but this does not exempt the University from paying tax altogether.
VAT is the area of taxation that affects most University financial transactions on a daily basis. It is complicated for the University as it is subject to various different exemptions, reliefs, and other VAT regimes. The University does not, however, have a special overall 'exemption' from VAT.
As a general guideline, the most prudent assumption is that any payments are subject to VAT. Some transactions (like salaries or some grant funding) are outside the scope of VAT, some (like education) are exempt from VAT, some are subject to reduced rate VAT (like domestic fuel) or zero rate VAT (like books). However, the majority of day-to-day transactions are subject to VAT at 20%.
