Framework Contracts

There is no input VAT recovery on any Framework 7 contract and above with the European Commission.

This is a complete change from the VAT position on Framework 4, 5 and 6 contracts where HMRC allowed universities to recover the input VAT on these contracts.
There should be no VAT added to our sales invoices to the European Commission which should be coded as ‘SOS’, but any input VAT paid out will have to be borne by the Budget Centre as it is not recoverable from the European Commission.