Ministry of Defence: VAT

(asked on 14th March 2024) - View Source

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, how much VAT was paid by his Department to HM Treasury in each of the last three years; whether such payments are notional balance sheet transactions ; and whether such payment count towards the NATO target of 2 percent of GDP spent on defence.


Answered by
James Cartlidge Portrait
James Cartlidge
Shadow Secretary of State for Defence
This question was answered on 22nd March 2024

The table below provides details of VAT paid and not recovered by MOD’s main VAT registration for the previous three financial years (FY).

VAT paid by HMRC and not recovered £million

FY20/21

3,026

FY21/22

3,143

FY22/23

3,607

Total

9,776

These payments are not notional balance sheet transactions. They are are actual cash payments made by MOD and are accordingly considered part of the Department’s spend for NATO purposes.

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