The Department of Health has recently released an updated guidance note for PCT and SHA legacy teams about closedown arrangements for VAT.
The note advises that a final VAT return should be submitted for transactions processed in the period from 1st July to 31st August 2013.
Organisations that have already deregistered can still claim input VAT on some services, as long as these services relate to their taxable business activities that were made when they were VAT-registered. The Department advises that these would include, for example, costs incurred in closing down their accounts. It would be assumed that any VAT incurred since April 2013 on eligible contracted-out services could also be claimed.
VAT cannot be recovered on purchases related to exempt supplies, or on goods purchased after de-registration.
For further advice about claiming VAT on legacy body costs and how these claims should be submitted, please do not hesitate to contact us.