- Income outside the scope of VAT (OSC) in the UK is VAT free
- OSC income can be non-business (NB) or have a place of supply outside the UK
- OSC is different from exempt or zero-rated supplies
- Charities often receive OSC income, such as donations
- Charities need to determine if their activities are business or NB for VAT purposes
- Grants have varying VAT treatments based on the agreement
- Inter-company charges within VAT groups are OSC
- Charges between non-VAT-grouped companies may also be OSC
- The VAT treatment of management charges depends on the specific facts and agreements
- The place of supply being outside the UK affects the VAT treatment
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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