The VAT Cost Sharing Exemption is a provision in European law that allows businesses and organisations making VAT exempt and/or non-business supplies to form groups to achieve cost savings and economies of scale. Once formed the groups are relieved of a VAT charge on their supplies if all the conditions of the exemption are met.
This consultation invites comments on a possible model for a cost sharing exemption that could be introduced in the UK. It also asks specific questions to enable HMRC to assess the impacts of implementing the exemption.
Interested parties such as banks, charities, housing associations, insurance companies, residential care homes, universities and further education colleges should read the consultation, available on our website at http://www.ukvatadvice.com/news. CVC will be responding to the consultation and would be happy to incorporate any comments from interested parties into that response.
