Finance and Procurement services: VAT

We deal with all matters relating to VAT.

On this page

The VAT Registration Number for the University of Dundee is 270939731.

If you are quoting the VAT Registration Number outside the UK, you should use the prefix GB, so GB270939731.

View the VAT Registration Certificate for the University

VAT was introduced into the UK on 1 April 1973. It was intended to be a simple self-assessing tax. It remains self-assessing (i.e. VAT registered organisations tell HM Revenue and Customs [HMRC] how much they are due) – but it has become increasingly complex over the years.

One basic rule is, “If in doubt, please ask!"

VAT when you are receiving income 

HMRC see the primary purpose of Universities as being to provide education. Education provided by the University (which includes tuition, educational seminars and conferences) is classed as an exempt supply – which means that no VAT is charged – regardless of whether the invoice is addressed to an individual or a company.

Sometimes we receive income which is outside the scope of VAT – because the funder receives nothing back except our thanks. On other occasions, though, we do have to account for VAT at the standard rate (20%) on income – because we are providing consultancy or vatable research, as examples.

VAT when you are buying things 

There are two things to consider in terms of VAT when you are buying goods or services:

  • Is VAT due?
  • If VAT is due, can it be recovered?

The standard-rate of VAT in the UK is 20% - and that is the default position unless some other concession applies.

If the supplier is not VAT-registered, you cannot be charged VAT (outside the scope).

If you buy education from a public body (what HMRC calls an eligible body – e.g. University, professional body, charity etc.) you will not be charged VAT (exempt).

We benefit from a Reduced Rate of 5% for some fuel and power – and a Reduced Rate for Hospitality (12.5% from 1 October 2021) which covers hospitality and accommodation.

Zero-rating is a special UK concession – which has wide benefit – e.g. basic foodstuffs in a supermarket (but not “luxuries” like ice cream or aerated drinks), and books or journals. The University also enjoys these general concessions – as well as some additional ones which apply since we are a charity.

If the University places an advertisement (from 1 April 2000) no VAT is charged. We have to be buying someone else’s space, though – in print, radio, television, or online. Things we do to promote ourselves do not qualify for the zero-rating concession.

As a charity, the University may also purchase certain goods and equipment at the zero rate of VAT when they are to be used for medical research, training, diagnosis or treatment. The goods that are eligible for relief are "medical, scientific, computer, video, sterilising, laboratory and refrigeration equipment for use in medical or veterinary research, training, diagnosis or treatment". The zero rate also applies to the charges made by external contractors to repair or maintain existing qualifying equipment that was purchased or hired at the zero rate. The goods must be used solely or mainly (i.e. for more than 50% of the time in use) for the qualifying purpose. Please note that this only applies to purchases by the University for the University. Staff or students are not able to obtain zero-rating on personal purchases.

Whether or not we can recover VAT depends on how the project-project type combination is set-up. If we are accounting for VAT on income (e.g. for a consultancy project) then we will be recovering VAT on directly-related costs.

OneUniversity Finance System

The OneUniversity Finance system produces certificates automatically when zero-rating codes are selected – but hard-copy forms can also be accessed through these links:

Overseas 

It is worth noting that the University is only registered for VAT in the UK. Where we pay another country’s VAT (e.g. if hiring a car in Europe), then that cannot be coded as VAT in our system.

Please note that there are occasions where we are liable to pay VAT in the UK when receiving goods or services from abroad. If you are in that situation, please seek guidance.

Further information

If you wish to explore this area in more detail, further information (and a range of E-learning modules) are available on the website of the British Universities Finance Directors Group – www.bufdg.ac.uk.
If you have any queries, do please contact tax@dundee.ac.uk for help. You may need assistance when something unusual crops up, or you may want reassurance that what you’re thinking is correct … you may want to talk through how all this relates to what you’re doing on a day-to-day basis, or think that a training session for you and your colleagues would be helpful. Please don’t be afraid to ask!