VAT Codes for Procurement Orders

Contents

Please note that the figures contained in the examples given below relate only to official orders. For examples of how figures are shown on Qfis in relation to payments, journals and income, please refer to the main Finance Directorate - OLD website.

VAT Coding of Orders to United Kingdom Suppliers

Code Description 
S Standard rate, 20% 
Z Zero rated items, 0% i.e. the rate applicable to the good or service is 0% (e.g. books or air travel) or the University can claim a dispensation, using an appropriate Zero-Rating Certificate, from the payment of the VAT (e.g. where the good or service is to be used for medical research funded by charitable sources) 
X Exempt i.e. a good or service to which VAT does not apply (e.g. education services purchased from another University) 
W Non-VAT-registered supplier, or, purchase of goods/services for which VAT cannot be reclaimed (e.g. corporate hospitality) 
U Utility, 5% (e.g. electricity)

In the majority of cases, codes S and Z will be used on procurement orders to UK suppliers.

Examples

  • A piece of equipment costing £100 + 20% VAT, will be recorded on Qfis as costing £100 with a Tax code ‘S’.
  • Booking a Belfast to Edinburgh return flight costing £200 will be recorded on Qfis as £200 with a Tax code ‘Z’.
  • A piece of equipment costing £10,000 which has a dispensation from the payment of VAT because it is to be used in medical research funded from charitable sources, will be recorded on Qfis as £10,000 with a Tax code ‘Z'.

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VAT Coding of Orders to Other European Union Suppliers

(Please note that this applies only to member states of the European Union. For non-member states, the 'Other Worldwide Suppliers' codes detailed below should be used.)

 

Code Description 
ES  EU Import - Standard Rated i.e. the University will be liable to pay the equivalent of the standard VAT rate to HM Customs and Excise on importation of the goods. 
EZ  EU Import - Zero Rated i.e. there is no VAT liability due to HM Customs and Excise because the goods are either zero-rated, or the University can claim dispensation, using an appropriate Zero-Rating Certificate, from the payment of the VAT (e.g. where the goods are to be used for medical research). 
EX  EU Import - Exempt Supply i.e. goods to which VAT does not apply (e.g. education services purchased from another University) 
EW  EU Import - Others, ie, any goods to which UK VAT is not applicable other than exempt or zero-rated supplies. 


In the majority of cases, only codes ES and EZ will be used on procurement orders to European suppliers.

Examples

  • A piece of equipment costing £150 and liable for Import VAT at 20%, will be recorded on Qfis as costing £150 with a Tax code ‘ES’.
  • Books ordered from Germany costing £30 (books are zero rated i.e. there is no VAT liability), will be recorded on Qfis as £30 with a Tax code ‘EZ’.
  • A piece of equipment costing £20,000 which has a dispensation from the payment of Import VAT because it is to be used in medical research, will be recorded on Qfis as £20,000 with a Tax code ‘EZ’.
  • Hospitality services being provided in Germany will include VAT (sales tax) at the German rate of 19%. The price will be the gross total cost, ie, including the relevant amount of tax. So, for example, a service costing £119 in Germany will have £19 included in the charge for the service. As the tax charged will not for be UK VAT, it should not be extracted from the purchase price and the total cost - in this case £119 - should be recorded on Qfis with a tax code of 'EW'.
  • In the case of consultancy services being provided in Belfast by a supplier based in Germany, VAT is not payable to the supplier and instead, the University will make payment directly to UK Customs & Excise. So, for example, consultancy services costing £5,000 will incur VAT at the UK rate of 20%. This should therefore be recorded on Qfis as £5,000 with a Tax code 'ES'.

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VAT Coding of Orders to Other Worldwide Suppliers

Code Description 
RS  Rest of the world Import - Standard Rated i.e. the University will be liable to pay the equivalent of the standard VAT rate to HM Customs and Excise on importation of the goods. 
RW  Rest of the world Import - No VAT [includes zero-rated items, items exempt from VAT and items where VAT is not applicable] 

   
Examples

  • A piece of equipment costing £2,500 and liable for Import VAT, will be recorded on Qfis as costing £2,500 with a Tax code ‘RS’.
  • Books ordered from America costing £300 will be recorded on Qfis as £300 with a Tax code ‘RW’.
  • A piece of equipment costing £35,000 which has a dispensation from the payment of Import VAT because it is to be used in medical research, will be recorded on Qfis as £35,000 with a Tax code ‘RW’.
  • Hospitality services being provided in the United States will include VAT (sales tax) at the rate of the relevant US state, eg, 6.25% in Texas. The price will be the gross total cost, ie, including the relevant amount of tax. So, for example, a service costing £106.25 in the US will have £6.25 included in the charge for the service. As the tax charged will not be for UK VAT, it should not be extracted from the purchase price and the total cost - in this case £106.25 - should be recorded on Qfis with a tax code of 'RW'.
  • In the case of consultancy services being provided in Belfast by a supplier based in the United States, VAT (sales tax) is not payable to the supplier and instead, the University will make payment directly to UK Customs & Excise. So, for example, consultancy services costing £5,000 will incur VAT at the UK rate of 20%. This should therefore be recorded on Qfis as £5,000 with a Tax code 'RS'.

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VAT on Printed Materials

To determine if a publication or printed materials are Vatable or Non-Vatable please click the following links. Please note that these lists are for guidance purposes only and are by no means exhaustive:

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