VAT on schools

[moggy1968]

I'm just doing a quote for a large install on a school.
do they pay VAT at 20% as per normal business installs or do they have some kind on concession?
cheers

 

[steve Leese]

There are several types of schools according to the tax man and they can range from 20% / 5%, to 0% for a school with a charitable status, you will have to find out how they are registered for tax, you can have a school registered as a business that should pay 20% but if that school has halls residence and you put the panels on the resdence it would be 5%,we have had a few troubles in the past because the school business managers are not sure of there status them selves .sory this is not more indepth but the football is just about to start

 

[pwboston]

Its one of those chasing around jobs, where you need to find out the entity of the school.

I am having the same problem with an indoor tennis centre, which isnt VAT registered, not too sure what entity it is, and am having a meeting tomorrow morning to try and sort it out. For quoting purposes, until you can be sure and until you have it confirmed, you have no choice but to use the 20% value. On the basis that further information is gathered to potentially change it.

 

[TedM]

Unless the school qualifies under the 'relevant charitable purpose' condition (unlikely if it is an ordinary school and only they would be able to tell you) or it is on residential accommodation then you can only charge 20% VAT. Whether the school can recover this (by being VAT registered or through their LA) is up to individual circumstances which only the school will know but this won't affect the rate you have to charge.

See section 10 of HMRC Notice 701/30 for some idea of the complexities involved: HM Revenue & Customs

 

[moggy1968]

Thanks chaps, I guessed it wouldn't be straightforward!
I'll leave it to the bursar to sort out!