UU����ֱ��

Is a grant consideration for a supply?

It is often assumed that grants are not consideration for a supply and they are therefore outside the scope of VAT. However, the position is more complex than this. HMRC will not see the fact that something described as a ‘grant’ is determinative of its VAT status. Some grants will be outside the scope of VAT, whilst others will be within the scope of VAT.

At a basic level, it is necessary to look at the substance of the ‘grant’ on a case-by-case basis. If the grant is freely given and nothing is given in return, then