VAT Cost Sharing Groups

As you may know, we have been working with other interested industry bodies to review HMRC’s policy on the VAT exemption for cost sharing. In order to prepare for the upcoming first meeting with HMRC we would be grateful to hear from you in relation to the 4 short questions below so that we can represent members’ practical experience. We are especially keen to understand whether there is a high negative response rate from HMRC in relation to ruling requests or whether in the first instance members found the exemption unworkable due to HMRC policy.

Please may I therefore ask you to take 5 minutes to respond to the questions below. I cannot stress enough that gathering your replies is a very important part of our preparation.

Thank you.

Question Title

* 1. Has your employer or an affiliated entity sought a ruling from HMRC on the application of the VAT exemption for cost sharing?

Yes

Question Title

* 2. If NO, have you considered use of the exemption and discounted it? If so, please indicate why not applicable:

Due to factual circumstances

Due to restrictive HMRC policy

Other (please specify)

Question Title

* 3. If YES, did HMRC give a negative ruling?

Yes

Question Title

* 4. If YES, please indicate the limb(s) of exemption contested by HMRC

Cost sharing group required to have a separate legal identity

Cost sharing group required to be owned by its members

5% entry test

85% directly necessary test

Exact reimbursement

Distortion of competition

Other (please specify)

Thank you for your time in completing this survey.