What VAT treatment should be applied to an invoice sent to Avant Homes for Biodiversity contribution as required under a S106 Planning Obligation for planning application for the development is 88 dwellings.
What VAT treatment should be applied to an invoice sent to Avant Homes for Biodiversity contribution as required under a S106 Planning Obligation for planning application for the development is 88 dwellings.
Section 106 contributions are outside the scope of VAT...
I was trying to be helpful by adding the basic requirement of VAT, that there must be reciprocity in that a supply (of goods or Services) is made for which the recipient makes payment ('a supply for consideration'); if you haven't got that, there can be no VAT due.
And the point then is that Section 106 imposes a statutory levy on developers - there's no reciprocity as the developer receives no supply in return for their payment, it's just something they're obliged to pay by law as part of the planning process.
Best wishes!