HMRC has updated its guidance around how to submit VAT126 claims for non-VAT registered bodies who are able to recover VAT.
Who can make a claim?
You can make a claim using a VAT126 form if your organisation is entitled to claim back VAT on non-business activities. Broadly speaking, these can be classified as:
i. a local authority or similar body;
ii. an academy school or multi-academy trust;
iii. a charity in the arenas of palliative care, air ambulance, medical, or search and rescue; or
iv. a non-departmental body or similar that is not registered for VAT.
How are claims made?
This is where HM Revenue & Customs has updated its advice.
Claims can be made either online or via the special form issued by HMRC to claimants. First time claimants will need their unique taxpayer reference, often referred to as the UTR number, in order to make a claim. You will also need the dates the claim relates to (see below), the registered postcode for the organisation, and details in support of your claim.
If a claim is for five or fewer invoices, you must manually enter the following information for each invoice to your claim form:
i. Date of invoice;
ii. Value of VAT on the invoice;
iii. Supplier’s VAT registration number;
iv. Name of the organisation receiving the supply; and
v. A brief description of the goods or services.
If the claim is for more than five invoices, you may now supply the information by way of a spreadsheet or document which is a single document. However, the same information is required for each invoice.
When can claims be made?
Claims must be made for a period of no less than one calendar month, and must end on the last day of a calendar month. If the claim is for less than £100 of VAT, the claim must cover a 12-month period.
Claims must be submitted within three years of the end of the month in which you received the supply if you are a local authority, or four years if you are a charity, an academy school, or a multi-academy trust.
Further Information
For further information on any of the points raised above, please contact a member of the Indirect Taxes team.