Readers’ forum: Is VAT payable on new emergency alarm system?

One of my audit clients collects service charge at a retirement village and is not registered for VAT because the service charges are exempt. The service charges are specified in the lease as each resident effectively owns their apartment on a 99-year lease.

The client trades as a limited company and is non-profit making; any surplus on the accounts is transferred to a contingent repair account ie to cover future redecoration etc.

The company is paying £30 000 plus VAT on upgrading the emergency call systems throughout the block ie the system whereby residents can pull a chord in their apartment if they need assistance or support from the duty manager eg if they fall over. It seems unfair that the supplier wants to add £6 000 VAT to their invoice as many of the residents are disabled and some are house bound. Do readers see...