Consultancy
This page outlines the role of VAT in consultancy.
Consultancy is the use of existing knowledge to provide advice to the commissioning party. It is subject to VAT at the standard rate when supplied in the UK. It is distinct from “research” which is defined as an original investigation to gain new knowledge or understanding. Consultancy services can include business advice, market research and routine testing services.
Any incidental expenses incurred and recharged to the customer, such as travel expenses, are also subject to VAT at the standard rate, even if no VAT was paid on the original purchase costs.
Supplies to customers, where the place of supply is within a European Community country, may be zero‐rated under ‘reverse charge’ VAT rules, provided the evidence of the client’s business status (their VAT registration number) is obtained and quoted on the University’s sales invoice.