- Elections have been a significant topic in local authority VAT matters.
- HMRC updated guidance on VAT recovery for election expenses by local authorities.
- VAT can be recovered for elections organized for another local government tier.
- No VAT is added to recharges for these election expenses.
- VAT recovery is not allowed for Parliamentary or Police & Crime Commissioner elections.
- Uncertainty existed when purchasing items for multiple election types.
- HMRC updated guidance after discussions with the Elections Funding Unit.
- Revised guidance allows full VAT recovery for costs related to both local and other elections.
- Previously, irrecoverable VAT might have been passed to the Consolidated Fund or borne by the authority.
- Unjust enrichment rules may apply if irrecoverable VAT was passed to the Consolidated Fund.
- No correction mechanism exists once a recharge claim is settled from the Consolidated Fund.
- Unjust enrichment does not apply if the local authority bore the irrecoverable VAT.
Source: pstax.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.
