VAT on computer software

Hi, We are selling some computer software, equipment and firewalls to a university. The university has a medical research centre and that centre will be using the supply. I know they are able to claim exemptions on some software and equipment (VAT notice 701/6 supplement) would a piece of hardware for their firewall count as computer equipment we can zero rate here? Also does a firewall and licenses count as eligible software in this case? In theory it is going to be used only by the medical research department - but the software is to protect their servers it is not a software designed for medical research. Can we accept their exemption certificate and zero rate the supply here?

Hi,

The customer can only benefit from the relief if the conditions below are met:

Zero rating goods and services bought with charitable or donated funds

For the sale of computer hardware and software the guidance does state that the benefit only applies when purchased solely for use in medical research, diagnosis and treatmemt and would not apply for a purpose other than medical research, diagnosis and treatment.

The guidance does not state that the software has to be designed for medical research but for the purpose of medical research. Please see the guidance below:

Funding and purchasing

Thank you.

As long as the purchase itself is for the purpose of medical research and its operations (e.g. firewall), the notice should apply.