A new VAT code has been issued to code University income from activities that are currently ‘Outside the scope of UK VAT’.
VAT Code 14 should be used for sources of income derived from grants (from government or charitable sectors), grant funded research, collaborative projects, donations from individuals or organisation, EU Framework 7 projects and certain sales to outside the EC.
If the funder has provided funding for a University activity without any expectation for anything in return (e.g. grants and donations), this is a non- business activity and therefore will fall outside the scope of UK VAT.
Please select VAT Code 14 when completing a Sales Invoice Proforma for these specific types of income or seek advice from Financial Accounts on ext 6184 / 3919 if you are unsure about which VAT code to use.
Please delete any saved copies of the old Sales Invoice Proforma. The revised form can be downloaded from the Finance Intranet.