Invoicing VAT exempt organisations

[judas]

We have a couple of upcoming project with one of our long-standing clients. The work is ultimately for a VAT exempt educational organisation. Our direct client is also an educational institution but not VAT exempt, nor are they VAT registered (they're a University). What's the situation with charging VAT? I'm thinking we still have to charge VAT even though the work is ultimately for the VAT exempt organisation. I don't think we have the option to directly invoice the end organisation. If we do charge VAT is there any way for a client to recoup this?

Thanks!

[Eric Mc]

Normally you would have to charge the VAT.

If your direct customer is a registered charity and the product you are supplying is directly in relation to their charitable activity, you can Zero Rate your invoices to them.

[fergywales]

To invoice at zero VAT, you would require to have notification from your directly invoiced client that they are VAT exempt (regd. charity number etc...)

Otherwise, add the VAT on your original invoice. Mr. HMRC will be scratching your door if not.

Paul