Residents have pulled together to bring about a broadband capability that would otherwise have been un- available to us from commercial providers like Openreach, or from the intervention of Central and Local Government due to funds restrictions.
Following discussions with HMRC, it has been agreed by them that VAT does not apply. We have not bought goods or services but, by means of a financial contribution, enabled the BT Group to complete what would otherwise have been an uneconomic project for them to undertake. As a financing transaction, it is exempt from VAT.
It is proposed to refund the VAT element of each of the contributors payments in September, by which time we expect the project to be fully “signed off” and the final sum due to BT will have been paid.
Thank you so much for helping to make this project a success. We hope you enjoy trouble-free superfast broadband for years to come.