CellNass Customers - Eligible for VAT Reclamation
Contracted Out Services (COS) is a Treasury refund mechanism to the NHS and Government departments of the amount of VAT incurred on eligible services under the VAT Act 1994 s.41(3)
COS was introduced in 1983 as a result of Government policy to open up the public sector to private sector competition in various areas of activity. Private sector organisations charging VAT for their services would have been at a competitive disadvantage against internal public sector providers which did not. The solution was to refund the VAT incurred on the charges by the private-sector providers but only in limited areas and only for services.
COS Heading 63 talks about ‘Storage, Distribution and Goods Disposal Services.’ This includes the provision of storage, distribution and disposal services by an external contractor or supplier. The archiving and retrieval of materials and documents sits within this, meaning CellNass customers are now able to reclaim the VAT paid on services.