Pay-in cash income
The University is VAT registered and is legally obliged to account for VAT on income it receives. Under UK VAT law, any cash income which is received, in return for goods or services provided, by a VAT registered business is subject to VAT, unless that income is either VAT exempt or zero-rated.
It is very important to correctly account for VAT on our income as failure to do so can result in investigations by HM Revenue and Customs (HMRC) leading to potential penalties and damage to the University’s reputation.
The uBASE system is used to process sales orders and generate sales invoices to external customers. Income generated through sales invoices has VAT applied as part of this process within uBASE.
There are instances when a sales invoice is either not required or is not appropriate, and these are typically functions or events where students or other customers are paying on the day, or through the On-line Store, for the services they have received, eg student contributions to course materials.
Even though a sales invoice is not required VAT on the income must still be accounted for. You can read more about handling different types of income, including advice on the VAT for that income, and wider guidance on dealing with income.
Need help or more information?
Who to contact
If you need advice or guidance on the VAT codes for income and chargeable events then contact the Tax section.