This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Government and Public Bodies

Government departments and health authorities: Contracted Out Services (COS) Headings: COS Heading 44 - Operation and maintenance of stores depots

This Heading allows recovery where you employ an external contractor to operate and maintain your stores depot.


  • Monitoring stock levels
  • Dealing with requisition requests
  • Contracting out the management (and running) of your stocks of items and equipment - such as dressings, medicines, lotions and stationery used in the provision of non-business healthcare.


  • The supply of the goods being stored

Additional information

Where you have a single contract for the operation and maintenance of your stores depot and for the supply of the goods, VAT can only be recovered on the service element of the contract where this is shown as a separate charge on the invoice.