240419ARCPaper3InternalAuditVATReview

This document contains a VAT review for the Cairngorms National Park Authority (CNPA), conducted by Azets in November 2023 and updated in March 2024. The review examined the CNPA's VAT position regarding the Cairngorms 2030 Programme, a £42.3 million initiative with numerous funding partners. The report finds that the CNPA's receipt of grants is generally outside the scope of VAT, but potential VAT risks exist within future project agreements and collaborative partnerships. The review recommends developing a checklist to assess VAT implications in contracts and advises the CNPA to consider potential VAT registration requirements based on income from taxable supplies. Appendices provide further details on HMRC guidance regarding grants versus service level agreements and VAT recovery on expenditure.