Humanitarian and Associated Research Funding - VAT Update

The Charity Tax Group published details of its correspondence with HMRC on the matter of the VAT treatment of funding in this regard. As it may be some time until HMRC updates its internal manuals we thought it important to circulate a link to the CTG site. This is an area which covers funding from the Department of International Development (DfID) and from UK Global Challenges Research Fund (GCRF).

It is not just an issue for overseas aid charities but can draw in our University network as they are often involved in back to back arrangements around such international research projects. The key clarification in this respect is that where a University passes GCRF to overseas partners who are contributing research services to the project this is outside the scope of VAT. This means that the UK University does not need to apply a VAT Reverse Charge on funds passed to such overseas parties as they are not regarded as making a supply to the University.

Centurion provides VAT support to Universities, Colleges and Charities across the UK and contribute to VAT and Finance conferences run by the British Universities Finance Directors Group (BUFDG) and the Association of Colleges (AOC). Should you need VAT support then please do not hesitate to get in touch via emailus@centurionvat.com

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