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Where Taxpayers and Advisers Meet

Clutching at VAT straws

pawncob
Posts:5099
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex
Clutching at VAT straws

Postby pawncob » Wed Oct 26, 2016 6:19 pm

I act for a Flood Defence Trust (and registered charity) which is about to spend a large sum on re-aligning the entrance to a harbour which is threatening to flood a village. The project involves moving several hundred thousand cubic metres of shingle and local authority and Government departments and other Quangos are on board.
We are trying to save or recover the VAT element of the contract, but I can't find any way this can be done as no building is being constructed and there is no supply being made.
Anyone know of a way to reclaim or achieve a lower rate of VAT, either directly or through legislation applicable only to L.A.s/Quangos or other N.G.O.s ?
With a pinch of salt take what I say, but don't exceed your RDA

les35
Posts:639
Joined:Wed Aug 06, 2008 3:09 pm

Re: Clutching at VAT straws

Postby les35 » Thu Oct 27, 2016 11:59 am

If the Trust fell within s33 or s41, non business input tax might be recoverable. It does depend on the status of the Trust, and also the source of funding. My fear would be that such bodies are generally not charities.
If the L.A. were to take the lead, is there any way they might recover the VAT charged?

pawncob
Posts:5099
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Clutching at VAT straws

Postby pawncob » Thu Oct 27, 2016 12:49 pm

Both sections would work, but we're not importing anything from a Member state! (and I can't find any Treasury Directives)
With a pinch of salt take what I say, but don't exceed your RDA


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