0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

VAT exemption for group cost sharing: HMRC guidance

31 August 2012

VAT can be a real cost for organisations which can’t normally recover the VAT they incur, where their own activities are VAT exempt or non-business, for example in education, health and welfare sectors, or for charities, banks, and insurance companies to name a few. So where these organisations are part of a wider group and want to share services such as back office functions, they can often find that VAT has to be charged between them, which then can’t be recovered.

To try and relieve this problem, a new VAT exemption was introduced this summer for services supplied by a cost sharing group to its members, provided they carry on VAT exempt or non-business activities (and subject to meeting various other conditions).

HMRC have now formalised what was previously just draft guidance on this new VAT exemption, which should be recommended reading for anyone looking to benefit from this new VAT exemption.

related opinions

The High Court offers no comfort for beleaguered retailers

Whilst this decision may not be surprising, it will undoubtedly send a chill down the spine of retailers in a similar position to The Fragrance Shop.

View blog

Home Office Central Registry for modern slavery statement goes live - first universities publish statements

The Home Office recently launched a central registry for modern slavery statements. A growing number of educational organisations, including a number of universities, have published statements on the registry.

View blog

Moratoriums

The new Part A1 moratorium was introduced partly in response to the Covid-19 pandemic and its impact on businesses. The moratorium is not intended to be used to simply delay the inevitable insolvency of a company, but rather to allow breathing space for that company to restructure and/or achieve an effective rescue.

View blog

Equal pay at ASDA stores - appeal to the Supreme Court unsuccessful

35,000 workers working in ASDA’s retail business sought to compare themselves to workers at distribution depots for equal pay purposes. Find out more about this Employment Appeal Tribunal.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up