Update on e-publications VAT claims (updated 26 Feb)

We emailed members about this on 25 February, but please note that this article and several of the links have been updated since then.

Further to our recent news articles (here and here) and the discussion board postings regarding the possibility of making protective claims for overpaid VAT on electronic publications in light of the Upper Tribunal decision in the News Corp case, we have been in contact with some of the major suppliers of e-publications to the HE sector. Inevitably we have not been in contact with all suppliers to the HE sector but asked a sample of universities from the BUFDG tax group who their major e-publication suppliers were and have contacted those, as well as suppliers on the relevant SUPC and APUC frameworks.

1.       How is BUFDG trying to help?

We are trying to assist in making the compilation and processing of claims as efficient as possible, and thought it would be helpful if suppliers received the information in a standard format from universities wherever possible. So we asked what format each specific supplier would like to receive the information in so that you can use the best format for each supplier. We also provided a suggested template, to expedite responses, so that suppliers could just agree to that if it was acceptable to them.

There is an element of the claims which is time sensitive, because if any suppliers submit VAT returns for the periods Dec-Feb/Mar-May/Jun-Aug/Sep-Nov then the period Dec 2015-Feb 2016 will drop out of time unless claims for that period are submitted by those suppliers to HMRC by Friday (28 February).

2.       Which suppliers has BUFDG contacted and what have they said?

We have been in contact with the following suppliers, and here is the latest position. Most are still considering the matter but some have provided definite responses (updated on 26 Feb - please note that this table is also shown with supplier contact details on this webpage which is updated as and when we receive more supplier responses):

In the absence of a response from a number of suppliers, you may wish to consider using the BUFDG template spreadsheet for an initial claim (at least for the months Dec 2015 to Feb 2016), so that at least those suppliers will receive the information in the same format from a number of universities rather than receiving them in numerous different formats.

3.       Process for compiling a protective claim to your suppliers

We have drafted a suggested process that you can follow to compile your claim to suppliers, and also make a claim to HMRC for any reverse charge VAT you have accounted for. The document setting this process out can be found on our website here.

Please note that this process has been updated on 26 Feb to emphasise that, as per HMRC's RCB 1 (2020) claims must explain fully why News Corp applies, provide a breakdown of the claim amount and calculation method, and be supported by sufficient documentation. Claims that do not meet these criteria will be rejected, so will not be effective in protecting historical periods.

4.       BUFDG documents

We have put the following documents on our website to help you in compiling and submitting these claims as efficiently as possible:

1. Suggested process for compiling claims to suppliers for overpaid VAT and to HMRC for overpaid reverse charge VAT (please note that this was updated on 26 Feb)
2. Draft covering letter to suppliers, as a suggested basis for your own letter (please note that this was updated on 26 Feb)
3. Templates for providing the information regarding the overcharged VAT to suppliers

5.       Future updates

As and when more suppliers respond we will add new templates to this page in the tax section of our website, and update the list of supplier responses here (last updated on 26 February, and updated as and when we receive more supplier responses).

If you have any queries, please contact Amanda.