Removal costs

If the University is the contracted party (i.e. the invoice comes direct to the University to pay) then VAT is applicable at the standard rate.  It does not matter where the items are being transported from, or where any related service (e.g. packing/ unpacking) takes place as long as the supply either starts or ends in the EU.

Where the transportation occurs wholly outside the EU (starts and finishes and all points in-between) then there is a VAT concession that states that the supply will be outside the scope of UK VAT

If the University is not the contracted party but the employee is then the Vat treatment will be different.  These costs (where the expenses policy allows) should be reimbursed via an expenses claim.

VAT on the construction of Student Accommodation

Construction of student accommodation

Construction of student accommodation needs to be carefully planned to avoid incurring large irrecoverable VAT costs.

The cost of construction of student accommodation may be relieved of VAT but using the accommodation for other purposes outside of term time can invalidate the relief. It’s possible to use another zero-rating provision to avoid a VAT cost, but that has its own strict conditions. So construction is an area that needs to be considered in-depth as an unexpected 20% additional cost can make such projects financially unviable.