VAT Question - Grants

[paulrockliffe]

At work we receive a grant from the Council. We manage an athletics stadium on their behalf and receive a grant for maintenance and operation of the facilities.

We are VAT registered because we have a Clubhouse (nothing to do with the Council), with a bar that takes us over the VAT threshold.

Do we pay VAT on the Grant?

If we didn't manage the facility for the Council, then the Council wouldn't pay VAT on the value of the grant would they?

[Eric Mc]

Grants are normally outside the scope of VAT.

However, if the donor of the Grant receives some sort of goods or service in return for the grant, then it isn't a pure grant and could be subject to VAT.