PPA's & VAT - Public forum - Planning Advisory Service (PAS)
Open group
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Started - July 2012
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Last activity - Today
PPA's & VAT
I have received advice from the Borough Treasurer that we need to levy VAT on PPA's. I was surprised by this given that the LPA is the only body that an applpicant can enter into a PPA with thus it is not a competitive process as such so to my mind it should not be subject to VAT. However, the Borough Treasurer has sought advice from HMRC and they are adamant that a PPA is Vatable at the standard rate, even though Planning fees are not. Whilst, I can follow that pre-app charges are Vatable due the applicant having the choice to seek independent advice from another source, I am still at a loss to understand this in the case of a PPA as clearly no one else except the LPA can deliver a PPA. Has anyone had similiar advice or contradictory advice to this? and are you charging VAT or not on PPA's? I would be interested to hear your views on the matter?
You make reference to charges for pre-app advice being subject to VAT - is it the case that LPA's that charge for pre-app advice do levy VAT on the fees? i ask because we ar looking to introduce this in the near future and VAT was not an issue i had given thought to. It is also the case that we hadn't considered VAT may be payable for any PPA - fortunately we ahven't yet entered into any. As with Mike, I'd be keen to hear any views.
Jon VAT on pre-app advice is chargable as you have a choice to go to your LPA or a private consultant as both can give you advice. In Building Control an applicant can either choose to use the LA or go AI and therefore both charge VAT. Where a monopoly exists as in an LPA only being able to grant planning permission then planning fees are not subject to VAT. That is why I am confused at how HMRC arrived at this conclusion as you can't enter into a PPA with anyone else but an LPA I would have thought?
Special measures is likely to impact on a very small number of LPA's and is a sanction by the Government rather than opening up the regulatory planning system to competition as effectively it gives the applicant a choice of 2 governmental organisations rather than a choice within the market. VAT is still not payable on planning fees anyway so bit of a red herring.