A new exemption could remove a VAT charge preventing universities and charities from gaining efficiencies by sharing costs, HMRC said as they launched a consultation.
A new exemption could remove a VAT charge preventing universities and charities from gaining efficiencies by sharing costs, HMRC said as they launched a consultation.
Many cost-sharing arrangements result in VAT being charged between the participants. ‘The [cost-sharing] exemption is a provision in European law that allows businesses and organisations making VAT exempt and/or non-business supplies to form groups to achieve cost savings and economies of scale,’ HMRC added.
Comments are invited by 30 September on a possible model for a cost-sharing exemption for the UK. Such an exemption has been under discussion for more than 12 months. The potential beneficiaries include banks and insurance companies.
David Gauke, the Exchequer Secretary to the Treasury, said: ‘This is a complex relief which could have far reaching impacts across a wide range of sectors and careful consideration of the consultation results will be required.’
A new exemption could remove a VAT charge preventing universities and charities from gaining efficiencies by sharing costs, HMRC said as they launched a consultation.
A new exemption could remove a VAT charge preventing universities and charities from gaining efficiencies by sharing costs, HMRC said as they launched a consultation.
Many cost-sharing arrangements result in VAT being charged between the participants. ‘The [cost-sharing] exemption is a provision in European law that allows businesses and organisations making VAT exempt and/or non-business supplies to form groups to achieve cost savings and economies of scale,’ HMRC added.
Comments are invited by 30 September on a possible model for a cost-sharing exemption for the UK. Such an exemption has been under discussion for more than 12 months. The potential beneficiaries include banks and insurance companies.
David Gauke, the Exchequer Secretary to the Treasury, said: ‘This is a complex relief which could have far reaching impacts across a wide range of sectors and careful consideration of the consultation results will be required.’
.tmb-editorspic.jpg?sfvrsn=c9a7a0cc_1)
