Agreement with European Commission for services and VAT treatment

[SeemaRaj13]

We have an agreement with the European Commission for what we regard as a service contract eventhough the work 'grant' is used throughout. We have recently registered for VAT and want to ascertain our VAT position on this agreement. We have written to the HMRC asking them to give their view on the agreement but they have responded with a generic reply asking us to look at their Notices 725 and 741A. Does anyone one else been through a similar experience?

[les35]

Do you have a written contract with the EC? How does it describe the work, and the consideration for that payment?
If the payment is the consideration for service rendered, is the EC in business?
You will probably need someone to look at the details, and provide you with a written ruling.