[jakko86]

Hi i hope this is in the rite section, Im doing work at the moment on a priests house which is being occupied by a family and the guy has said to me that i cant charge him vat as he is acting for the bishop and any work or materials are are vat free when its for the church?Is there any truth to this?

[swanvill]

My inital reaction is no. If you are VAT registered & charge other customers VAT then it does not matter if it is Church, the public or a semi-state company the rules will be the same for all of them. Your work is either liable to VAT or not.

If they can reclaim the VAT on your work is dependent on their own VAT status.

[Mr. Incognito]

You charge the VAT.

Little chancer.

Religious bodies are exempt from VAT which means they can claim it back.

You still charge them though.

[Victor]

Originally Posted by jakko86

Hi i hope this is in the rite section, Im doing work at the moment on a priests house which is being occupied by a family and the guy has said to me that i cant charge him vat as he is acting for the bishop and any work or materials are are vat free when its for the church?Is there any truth to this?

Drop him a letter asking for his exemption certificate.

[smeharg]

Originally Posted by Mr. Incognito

...

Religious bodies are exempt from VAT which means they can claim it back.

...

Really? Do you have a reference for this?

I would have thought they've no right to recovery as they're not making taxable supplies or engaged in qualifying exempt activities.

[Alan Shore]

I think there is a " 't " missing after the can.

[Mr. Incognito]

16.5 Exemptions
The goods and services which are exempted from VAT are listed in Appendix A. Exempt goods and
services consist principally of financial, medical and educational activities as well as admissions to and
promotion of certain live theatrical and musical performances. Exemption from VAT means that the
persons engaged in the exempt activitives are not liable for VAT on their receipts and are not entitled
to a credit or deduction for VAT borne on their purchases. It is emphasised that exempt persons are
not entitled to receive taxable goods or services free of VAT, simply because they are exempt from
charging VAT on their supplies.

Exempt Activities:

(xxii) supply of services and of goods closely related thereto for the benefit of their members by
non-profit making organisations whose aims are primarily of a political, trade union, religious,
patriotic,philosophical,philanthropic or civic nature where such supply is made without payment
other than the payment of any membership subscription;

However where a customer has a valid 13B certificate and supplies you with a copy of this certificate for your records you may zero-rate supplies of goods or services to that customer.

You charge them in absence of the cert

[smeharg]

Originally Posted by Mr. Incognito

...

Religious bodies are exempt from VAT which means they can claim it back.

...

Originally Posted by smeharg

...
they've no right to recovery as they're not making taxable supplies or engaged in qualifying exempt activities.

16.5 Exemptions
The goods and services which are exempted from VAT are listed in Appendix A. Exempt goods and
services consist principally of financial, medical and educational activities as well as admissions to and
promotion of certain live theatrical and musical performances. Exemption from VAT means that the persons engaged in the exempt activitives are not liable for VAT on their receipts and are not entitled to a credit or deduction for VAT borne on their purchases. It is emphasised that exempt persons are not entitled to receive taxable goods or services free of VAT, simply because they are exempt from charging VAT on their supplies

I thought Alan Shore was right that it was a typo, but as it's not been corrected and we've all been given a lesson in exempt activities and VAT 13A procedure I'm a little confused...

[Mr. Incognito]

Originally Posted by smeharg

I thought Alan Shore was right that it was a typo, but as it's not been corrected and we've all been given a lesson in exempt activities and VAT 13A procedure I'm a little confused...

t

happy?

[Marcusm]

Originally Posted by Mr. Incognito

You charge the VAT.

Little chancer.

Religious bodies are exempt from VAT which means they can claim it back.

You still charge them though.

How does someone who is exempt become entitled to a VAT input credit (which would be necessary to get a refund)? I see how it works for someone who is providing services or selling goods at zero rate, I thought the 13B procedure related only to persons providing goods and services which are within a category which are VATable but which are being exported b2b therefore zero rated. The 13B procedure is just to minimise their cash costs. It should not be used to grant refunds to persons (such as churches) which are not carrying on VATable activities.

[jakko86]

So id be looking for a 13b certificate and if thats not provided ill be charging vat?

[smcgiff]

Originally Posted by jakko86

So id be looking for a 13b certificate and if thats not provided ill be charging vat?

Vat 13b, really?

You have to charge them vat. You just might go to hell though :-)

[Marcusm]

Originally Posted by jakko86

So id be looking for a 13b certificate and if thats not provided ill be charging vat?

I can't believe that they could have any basis for having such a certificate. Likewise, even if they were somehow VAT registered, it sounds as if the house is let so it's 99.9% certain they could not recover VAT anyway (very very few residential properties have had the "option to tax" exercised).

Whoever is telling you not to charge VAT is trying to get you to commit a number of offences and needs to be told to clear off.

[Shane732]

Seriously, a VAT13B?

Charge VAT like you normally would.

VAT is a tax on goods and services, it's the goods and services that attract the tax not the person receiving the good and services.

[jakko86]

This guy is english and possibly he is crossing his wires between here and there? But yes i agree vat will be charged.