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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 Wendy MacFarlane on ext 2385 if you think the relief should apply to any of your purchases.

VAT on goods from outside EC Member Countries

Import VAT

If applicable, VAT will be charged by HMRC Customs and Excise when the goods arrive in the country.  Usually the VAT charge is paid on our behalf and then recharged to us by the courier company used to import the goods. 

You may be contacted by a courier company asking for payment of the VAT before a shipment can be released from customs.  The preferred method of payment is via invoice as if a credit card is used the University has no way of identifying and reclaiming the VAT which then will ultimately be a charge to your cost centre.  Contact the VAT department VATenquiries@st-andrews.ac.uk or contact Wendy MacFarlane on ext 2385 to arrange swift payment of any such invoices where goods are needed urgently.

Relief from import VAT is available in certain circumstances [include link to import export here]

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.)

Under the place of supply of services rules certain supplies are taxed in the country where they take place and therefore local VAT would be charged.  In this instance no VAT would be self-charged on top.

Examples of services that are taxed in the country where they take place are:-

  • Accommodation
  • Fees for attending a conference
  • Catering and restaurant bills

If you would like further guidance, please email vatenquiries@st-andrews.ac.uk. or contact Wendy MacFarlane on ext 2385.

Budgeting for VAT

The rule of thumb is that anything you buy will have VAT at the standard rate (20%) applied to it unless specific rules apply.  [Link here to exempt and zero rated supplies]