VAT

Brexit - VAT and duties

Following the result of the General Election, it is likely that the UK will now leave the EU on 31^st January 2020. It is now looking more likely that we will leave with an agreed “deal” which will allow trading to continue to operate smoothly during the “Transitional Period” which will last until at least December 2020. As a result, the likely initial impact upon Colleges and departments is less than anticipated in a “no-deal” scenario and in the short term and usual processes around VAT and duty should be followed including issuing zero-rating certificates where appropriate and applying for duty relief where appropriate

UOB EORI Number: GB 729 8561 87

New Core - VAT Processes

New Core is going live on 3^rd June 2019. The self service system will now require end users to manage a number of VAT processes including VAT certification and selection of Tax Classifications and Recoverability of VAT in Oracle Fusion. In addition, receipting processes may require end users to attach certain VAT and import documentation as well as delivery notes.

Many other teams will also be required to update existing VAT processes including VAT codes, commodity code information etc.

Help and support is available in the link on this page under “New Core” and will include links to the various VAT Certificates, guidance documents, VAT codes etc.

In addition, you can contact your School or College teams who will support with VAT processes locally. The University Tax Team are also here to help – please contact them on;

VAThelpdesk@contacts.bham.ac.uk.

On 8^th July 2020, the Government announced that it would introduce a temporary reduced rate of VAT of 5% on certain supplies as follows;

Certain supplies of food and drink for consumption in cafes, bars and similar premises;
Overnight accommodation in hotels, B&B’s and similar establishments
Admission to certain attractions including shows, theatres, concerts, museums, exhibitions and similar cultural events.

It will be effective for a temporary period between 15^th July 2020 – 31st March 2021 and has been announced as part of the Governments urgent response to the coronavirus pandemic.

The change will affect the University in a number of ways:

Once reopen, sales of certain food and drink from its catering outlets, including hot takeaway food and drink will be subject to the lower rate of 5% VAT
Overnight accommodation at Edgbaston Park Hotel and Conference Centre for external customers will be subject to 5% VAT (as will charges for food and non-alcoholic drink in the bar and restaurant)
Any other overnight accommodation provided by the University e.g. to non-students in our residences is potentially eligible for the 5% rate
Sales of tickets for events, exhibitions and shows will be eligible for the temporary reduced rate
Entry to certain attractions such as Winterbourne Gardens for external customers will be subject to 5% reduced rate

It may also affect items that you procure and therefore you may need to be aware of the changes when raising requisitions and purchase orders through Core Systems.

Help can also be obtained from the VAT Section of the Finance Office, telephone: 46100 email: g.j.romano@bham.ac.uk