If your charity received or supplied Covid-19 testing services, you could have overpaid VAT. Robert Marchant and Kieran Smith from Crowe UK explain.
If your charity supplied or received Covid-19 testing services, then you could have overpaid on these services.
HMRC recently indicated that its policy relating to VAT treatment of Covid-19 testing services was over-restrictive. Crowe UK has been working with a number of organisations to determine the correct VAT treatment of the activities and has provided a helpful briefing and overview here.
Kieran Smith, Director, Crowe UK, explains: "If VAT has been applied incorrectly to services received, it is possible to correct the position by seeking a credit from the supplier.
"In instances where a charity may have over-charged VAT on its own supplies a correction can be made directly with HMRC. Therefore, action now could result in a VAT refund."
Read the full background and technical arguments.