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VAT exemption for supplies of research: HMRC guidance

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HMRC has published additional guidance after consultation on the impact of withdrawing a VAT exemption revealed a “lack of clarity” in the distinction between exempt business supplies that will be affected by the withdrawal and supplies that are outside the scope of VAT.

Revenue & Customs Brief 10/13 explains the circumstances in which collaborative research will be regarded as outside the scope of VAT. HMRC is asking respondents to the consultation to provide additional data, and will publish a formal response document later. The government confirmed at Budget 2013 that it intends to introduce secondary legislation withdrawing the exemption with effect from 1 August 2013.

Categories: News , Indirect taxes , VAT