Not VAT Registered – Can You Still Claim a VAT Refund?

Not VAT Registered - Can You Still Claim a VAT Refund?

Date:

Category:

Share this article:

VAT is a tax normally associated to the business environment and certainly, under the usual VAT rules, to be able to claim back VAT on purchases the tax payer has to be:

  1. VAT registered
  2. Be able to link the VAT paid on their costs to Taxable Business Income that they generate
  3. Hold the correct VAT evidence to support the claim

But there are situations where certain types of organisations CAN recover the VAT they have paid on their costs even though they are not VAT registered AND those costs do not support ANY type of business activity – Taxable or Exempt.

This VAT Refund system, using a form VAT126, is specific to the following bodies who are not VAT registered:

  • a local authority or similar body
  • an academy school or multi-academy trust (MAT)
  • a charity in palliative care, air ambulance, medical or search and rescue
  • a non-departmental body or similar body not registered for VAT

The VAT these unregistered entities can recover must relate to their non-business activities – statutory activities in the public bodies or free to access services and support in the charities noted.

If you’re in such an organisation and have never yet made a claim to recover this VAT then there is potentially time available to you as the process for claiming, using the online form VAT 126, can go back over a four year period. If it’s a first claim you will have to print the form off and post it to HMRC but subsequent claims can be done online, once your organisation is set up in their system.

To find out more about the online form, how to complete and submit it, then follow this link to the HMRC guidance.

Speak to an expert

If you would like specific VAT support on this or any VAT-related matter then contact us using the form below.

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

If you opt for acceptance, we will place all cookies. If you opt for rejection, we will only place functional and analytical cookies. You can adjust your preferences at a later time.

Accept Reject More options

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

Functional cookies
Arrow down

Functional cookies are essential for the proper functioning of our website. They allow us to enable basic functions such as page navigation and access to secure areas. These cookies do not collect personal information and cannot be disabled.

Analytical cookies
Arrow down

Analytical cookies help us gain insight into how visitors use our website. We collect anonymised data about page interactions and navigation, enabling us to continuously improve our site.

Marketing cookies
Arrow down

Marketing cookies are used to track visitors when they visit different websites. The goal is to display relevant advertisements to the individual user. By allowing these cookies, you help us show you relevant content and offers.

Accept all Save

Name

Subtitle
Developer
Location
They are focussed on creating a future-focused and relationship-driven culture, that keeps its promises to you, our team members, and partners.
Xeinadin