Mess Subscriptions & VAT

Discussion in 'Army Pay, Claims & JPA' started by Gracchus, May 12, 2008.

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  1. Can any of the Service Funds gurus answer a question about where VAT is levied against Mess Subscriptions?

    The entertainments element of our Mess bills is subject to VAT, which strikes me as a bit odd; after all the money has not been spent, just set aside. VAT is then paid on whatever we subsequently spend that money on. So, in my simplistic mind, it appears that we are paying VAT twice.

    Is this correct? If so, then the answer is to pay Subs, not Ents.

    Grateful for a rational explanation.

  2. Need to investigate things further - but I'm pushed today/tomorrow.

    However, for your mess to ask for VAT means they must issue you with a dated, numbered invoce that shows their VAT number.
  3. Agreed, I've been working with VAT for 15 years, ask for a VAT invoice.
  4. Depends what your mess status. For most, subs are outside the scope of VAT, SFR Ch 11 refer

    1132. Subscriptions. QRs requires that all officers, WOs and SNCOs are to be members of a mess and are to pay a monthly subscription fixed by the Commanding Officer within the laid down limits. This basic mess subscription is outside the scope for Regular, Reserve and Foreign and Commonwealth personnel. Subscriptions are standard-rated when paid by other personnel, e.g. retired servicemen, other civilians and JNCOs.
  5. and no, you aren't paying VAT twice, it is a little complicated (you need to read the full chapter) the Input element on the VAT on your Ents is offset by the Output element when your Mess pay the bill to the group etc.
  6. If your mess is VAT registered then your mess bill should already have the VAT No on the bill (this is your VAT receipt)

    Subscriptions re outside the scope for VAT but Ents are standard rate, as Fangy said it's complicated. Basically, by paying the VAT on your Ents it allows the Mess to claim input tax from HMRC.
  7. Thanks - I understand now. Whether I can trust our contractor to ensure that the VAT comes back at the output is quite another matter.
  8. Hoho, defrauding the Excise is a serious crime, I doubt any contractor working with MoD would consider that... :roll:
  9. Never confuse incompetence with intent. It is the former that applies to our contractor.
  10. Given the recent news