QMUL is generally not exempt from paying VAT, quite contrary, VAT is largely a cost to QMUL as it cannot be recovered in most instances.
However, as a charity, QMUL can claim some exemptions on certain qualifying goods if purchased for a qualifying purpose (e.g. used in a medical research).
In order for the supplier to apply Zero rate VAT, the university must meet all relevant conditions (please see our Zero rate VAT internal guidance) and issue an appropriate certificate.
A blank certificate is usually issued automatically through Agresso and usually comes with a purchase order (PO). For this to happen, you will need to select an appropriate product code from the Agresso vat-codes list and change the tax code to “P3”. The certificate must be completed by the buyer (only the appropriate boxes should be ticked); a copy should be attached to the PO in Agresso (or kept on a local drive for a minimum of six years), and a copy sent to the supplier together with the PO.
The supplier should charge VAT at Zero % on their invoice based on the certificate, but they reserve the right to charge VAT if they think that the certificate was issued incorrectly.
If you are purchasing such goods from overseas you MUST give this certificate to the shipping agent and/or the supplier before the shipping process starts, and remind them that the items should be cleared through customs as Zero rate VAT, otherwise you will be charged VAT. Please note you still might be charged customs duties which are separate from VAT.
If you are purchasing goods from overseas where the value of invoice (shipment) is less than £135 excluding postage/shipping, you will also need to email this certificate with a relevant PO to imports-exports@qmul.ac.uk, otherwise you will be charged VAT under reverse charge mechanism (self-charge) by central finance.
Please note, if VAT and/or customs duties are payable these must be settled at the port of entry through the shipping agent, because QMUL does not have a deferment account with HMRC and does not operate postpone VAT accounting (PVA).
Any further queries please contact Tax Manager finance-tax-manager@qmul.ac.uk.