Do we have to pay vat on our covid 19 government grant?

Accounting
1

We have received a covid 19 government grant, which we know counts as income and will be subject to tax if we make profit this year, but what we don’t know is as a VAT registered business, do we have to pay vat on it in this quarters return?

We’ve googled this question, and not found anything helpful. Anybody know the answer please?

2

No it’s out of scope for vat. Don’t include it in your vat return.