Purchase coding - Services

Assigning the correct VAT code to a transaction is important to assist the University in paying (and reclaiming) the correct amount of VAT to HMRC. In addition, HMRC will periodically audit the systems and processes which the University uses for preparing its VAT return, and in this respect correct coding will remove the possibility of penalties being imposed or further increased attention from HMRC.

To identifiy the correct VAT code to use for a particular expense, a number of questions need to be asked and answered. Following the Purchase coding - Services decision tree, will assist in arriving at the correct code to use for the purchase of services. The senarios can become complicated, particularly when dealing with overseas purchases, and therefore if you are in any doubt please do not hesitate to contact the Tax Section.

If you are unsure as to whether or not the country you are purchasing your service from is part of the EU, please use the link below.

HMRC list of EU Countries