HMRC has issued VAT126 guidance for charities and local authorities on how to claim a VAT refund when the organisation is not registered for VAT
The online service VAT126 can be used by exempt organisations such as local authorities, academies, public bodies or eligible charities to claim back VAT for non-business activities.
VAT126 can be used by:
- a local authority or similar body;
- an academy school or multi-academy trust (MAT);
- a charity in palliative care, air ambulance, medical or search and rescue; and
- a non-departmental body or similar body not registered for VAT.
Claims must be submitted within three years after the end of the month in which the VAT-rated supply was received the supply in the case of local authorities, and within four years for charities, academy schools or multi-academy trusts.
To make a claim, the organisation will need to have an HMRC Unique Reference Number and a Government Gateway user ID and password, as well as a registered organisation postcode.
In addition, the claim must include the start and end dates for the VAT claim and a bank statement dated within the last three months from the claim to confirm the correct address or bank account.
For each invoice being used for a VAT refund the claimant will have to provide:
- invoice date;
- supplier’s VAT registration;
- VAT amount;
- name of the organisation receiving goods or services on the invoice; and
- brief description of goods or supplies.
Make a claim
Claims must be for a period of at least one calendar month and must end on the last day of a calendar month.
For claims less than £100, it must cover a period of at least 12 months.
For first-time claimants will have to apply for a Unique Reference Number which has to be made in writing using the relevant HMRC online form. Once set up, all future claims can be made online.
For those unable to complete a claim using the online service, it is possible to complete the print and post form. Make sure the form is completed in one sitting as it cannot be saved and subsequently amended.
HMRC Guidance: Claim a VAT refund as an organisation not registered for VAT issued 4 September 2018
Report by Sara White