VAT Reliefs

Equipment used for medical or veterinary research - overview of the relief

As a registered charity and research institution, the University is eligible to purchase certain items of equipment free of VAT when purchased for use in medical or veterinary research, training, diagnosis or treatment.

The relief can apply to items purchased from suppliers based in:

UK

EU (a list of countries in the EU can be found here)

Non-EU (or the rest of the world)

When you can claim the relief

The zero-rating relief can be claimed when you purchase 'eligible goods or services' for use in medical or veterinary research, training, diagnosis or treatment.

Conditions for relief to apply

In order to be eligible to claim the relief both of the following must apply:

• The equipment must be included in a list of eligible goods
• The goods must be used for medical or veterinary research, training, diagnosis or treatment.

IMPORTANT: IF EITHER OF THESE CONDITIONS ARE NOT MET, THE RELIEF MUST NOT BE CLAIMED.

Eligible goods

These include:

• Medical equipment
• Scientific equipment
• Computer equipment and certain software
• Video equipment
• Sterilising equipment
• Laboratory equipment
• Refrigeration equipment
• Parts and accessories for use in any of the above equipment

A more comprehensive list can be found here.

The following items do not qualify:

• Bulk materials such as liquids, powders, sheets, pellets, granules
• Clothing (other than specialist medical equipment such as surgical masks, gowns and gloves)
• Consumables such as chemical reagents, fuel, ink, medicines, oil, paper, and cleaning and sterilising fluids. However, medicines and chemical reagents may qualify for zero-rating under a separate relief. link to chemicals section

What is medical or veterinary research?

This means original research into human or animal disease and injury.   The items purchased for any other use is not eligible for zero-rating. This includes equipment purchased or hired for:

• General biological studies
• Environmental research
• Research into animal husbandry or food production
• General administration
• Domestic or leisure purposes

Where the equipment is to be used partly for a qualifying use, and partly for any other use, it can be zero-rated only where its main use is for medical or veterinary research. In this context ‘main’ means real, substantial and continuing.

If you are unsure as to whether or not goods or services are eligible for this relief, please contact the Tax & Treasury Team (vatenquiries@st-andrews.ac.uk) for further guidance.

How to claim the relief

UK and EU based suppliers

Via a Requisition/PO (purchase order)

Where the medical and veterinary research exemption is applicable – select "Medical/Veterinary Research" in the intended use field of the requisition. Where the purchase qualifies for "Medical/Veterinary Research" the Purchase Order will include a zero-rated certificate to support this.

If you are in any doubt, contact the Tax and Treasury team by emailing: vatenquiries@st-andrews.ac.uk. 

Non-EU based suppliers (imports)

To ensure VAT is not charged on imports it is very important that the correct import codes (CPC and commodity codes) and the zero rating certificate are given to the courier company before the goods are shipped.

Further guidance can be found in the import/ export section of the guide or by contacting tax and treasury via vatenquiries@st-andrews.ac.uk.

Use/misuse of the relief

Please note the use of zero-rated tax codes will be monitored by the Tax & Treasury Team for signs of repeated misuse. From time to time, we will carry out selected checks on orders coded with a zero-rated code to ensure proper use. We may ask you to provide further information regarding the equipment or service purchased and the qualifying medical or veterinary research etc. that this relates to.

The University has the responsibility to make truthful statements and to provide an appropriate zero rating certificate to support the claim.  HMRC will not seek to recover VAT due from a supplier who has taken reasonable steps to check the validity of our declaration, but has failed to identify an inaccuracy in our certificate and, in good faith, has zero rated a supply.  However HMRC will seek to apply input VAT on a purchase where the certification was not valid and this will be a cost to your own budget.

If you are unsure as to whether or not the goods or services are eligible for this relief, contact the Tax & Treasury Team (vatenquiries@st-andrews.ac.uk) for further guidance.