Introduction to VAT

This session is for clerks, finance staff and councillors. It explains how VAT rules affects local councils, focussing on those that are not VAT registered, but reclaim VAT using Form VAT126.

Essential for any council contemplating major building projects.

Alternative sessions are available in our programme for councils that are registered for VAT and submit VAT returns directly from their accounting software.

Topics include:
• how VAT law applies to local councils
• where to find the law and guidance
• what are business and non-business activities
• understanding whether sales are taxable or exempt from VAT
• when a council must register for VAT
• when VAT can be reclaimed
• partial exemption
• reclaiming VAT when using grants and donations

By the end of this session you will:
• Know where to find the relevant legislation and guidance
• Understand the key concepts of VAT
• Know when a council can or can’t reclaim VAT
• Recognise when a council must register for VAT
• Be aware of activities that require special attention

Session leader: Debra Smith or Steve Parkinson, The Parkinson Partnership LLP

Steve is a former Town Clerk & an accountant with 30 years’ experience in public sector finance, who specialises in advice & training for the local council sector.

Debra is an experienced consultant and former VAT inspector, as well as being a parish councillor.

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Instructions