HFMA September Meeting VAT Update

by Berthold Bauer on October 27, 2016

The HFMA have recently released minutes of their September VAT Technical Sub-Committee meeting. Please find below a summary of the more interesting points:

COS Heading 33 Library Services
The committee noted that HMRC have recently rejected a submission relating to the reclaim of VAT on online Library services. The committee is now working on a further submission which it is hoped will convince HMRC that this is a service that is eligible under Heading 33 – Library Services.

NHS Commissioning Support Units (CSU) to leave NHS Divisional Registration
Currently these organisations are part of the NHS Divisional Registration, which means that all supplies made by them to other NHS organisations within the same Divisional Registration are outside the scope of VAT.

From 1st April 2017 the CSU’s will be outside of the NHS and will be forced to charge VAT on a large number of supplies that they make. Some of these supplies are not currently eligible for VAT reclaim under the Contracted Out Services which will result in increased costs for NHS Trusts. Any NHS Trust making supplies to CSU’s may also have to start charging VAT to them from this date.

If your organisation makes supplies to, or receives supplies from, a CSU then please contact us to discuss this matter as soon as possible to ensure that you are ready for any changes in VAT that may occur.

Outstanding COS guidance

HMRC have confirmed to the Committee that the few COS headings that had not yet been officially published on the website will not change from the previously published interim guidance – this mainly refers to Heading 52 Professional Services. These headings have now been published and are available along with all COS guidance on the VAT Government and Public Bodies Manual (VATGPB) online.

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