Cost Sharing Consultation
With the growing emphasis on collaboration across sectors in Wales, especially in terms of securing public sector contracts, this is an important VAT issue to get onto the agenda for any entities looking to collaborate to tender for projects or to work together on shared services delivery within their own sectors. Whilst it is of relevance to the commercial business sectors with exempt income activities such as Property, Finance and Insurance the initial organisations that seem to be more actively considering applications are those in the charity sector and specifically those in the housing association area.
Following on from the original consultation paper (click here to download) more detailed proposals were released for consultation with this second consultation process closing in May (click here to download). Centurion continued its role in the process and submitted further feedback on the latest draft. (Click here to download).
With the expectation that the Finance Bill in July will contain the final draft for the enactment of this legislation it is to be considered whether or not it will indeed remove the VAT disincentive that currently exists for partly exempt or non-business entities seeking to collaborate on projects or share services.