Buying Goods and Services from Outside the UK
If you buy goods and services on behalf of the University from overseas suppliers, there are some special rules that you need to be aware of.
The rules differ for supplies received from EC and non-EC countries and will vary depending on whether the University has received a supply of goods or services.
VAT on goods from other EC Member Countries
Acquisition Tax
When the University receives goods from a supplier in another EC member state, acquisition tax will apply.
Although no VAT or tax may be shown on the invoice from your supplier, in order to account for the acquisition tax due, the University will self-charge the VAT due at the same rate applicable if the goods were purchased in the UK. (This will be carried out centrally by the finance department and you will see "acquisition tax for period xxx" appear on you cost centre codes.)
Items purchased by the University which would ordinarily be exempt or zero-rated when supplied in the UK will have no acquisition tax applied (e.g. books). There are also reliefs available from acquisition tax for eligible goods purchased for medical or veterinary research, please e-mail VATenquiries@st-andrews.ac.uk or contact Janette McKinnon on ext 2582 if you think the relief should apply to any of your purchases.
VAT on services from outside the UK
Reverse Charge VAT
When the University receives services from a supplier in another EC member state or a non-EC country, reverse charge tax will apply.
Similarly, although no VAT or tax may be shown on the invoice from your supplier, in order to account for the reverse charge tax due, the University will self-charge the VAT due at the same rate applicable if the services were purchased in the UK. (This will be carried out centrally by the finance department and you will see "reverse charge tax for period xxx" appear on you cost centre codes.)
From 1 January 2010, reverse charge tax will now apply to all business to business transactions received from overseas suppliers (with some exceptions). For VAT purposes, the University is considered a "business" and must comply with these rules.If you would like further guidance, please email vatenquiries@st-andrews.ac.uk. or contact Janette McKinnon on ext 2582