HMRC has launched a consultation to examine how the European VAT cost-sharing exemption might be used by UK businesses and organisations.  If implemented, the exemption could remove the VAT charge and prevent institutions such as charities from gaining efficiencies by sharing costs with each other.

HMRC published its Formal Consultation Document at the end of June and hopes to receive responses from as many sectors as possible.  Following our recent co-hosted seminar on the VAT cost-sharing exemption, HMRC indicated that it was particularly interested in views from those in the education and charity sectors and how housing associations might use the exemption.

The consultation can be accessed via is this link and will close on 30 September 2011.

If this is of interest to your organisation, we would encourage you to join in the consultation.