Research

For guidance on VAT in relation to research work.

Definition of 'research'

Research is defined for VAT purposes as "an original investigation undertaken in order to gain knowledge and understanding".

An investigation that is no more than the gathering of data or the collation of existing knowledge is not regarded as research for VAT purposes. There must be an element of analysis and original thought that is applied to data or information after it has been obtained for the investigation to count as research.

Grant Funded Research

UCL is not making a supply for consideration but is instead receiving grants for which nothing is given in return. These grant funded project areoutside the scope of VAT.

Where there is a collaborative arrangement between different research institutions where all parties to the grant are named on the application or where the funding flows through one named party where they act as a conduit in passing the funds to others involved in the project the funding is outside the scope of VAT.

Commercial Research

Where research is supplied by way of business and in return for consideration this is taxed at the standard rate of 20%.