VAT For Charities

It’s a common misconception that charities do not need to pay VAT. Whilst there are many reliefs available for charities, whether VAT is payable or not is not always clear-cut.

Charities and not for profit organisations will be charged VAT on many of their purchases and may also be liable to register and account for VAT if they generate taxable business income. There also several VAT reliefs available to charities on certain goods and services purchased, as well as on income generated from certain fundraising activities. 

Naturally, it’s important to ensure your charitable organisation is complying with VAT legislation. Trust our expert VAT team to guide you successfully through what can be a complex VAT landscape. We can provide comprehensive VAT advisory and compliance services relating to all types of transactions entered into by charities. This may include, but is not limited to:

  • Reviewing or implementing business/non-business and partial exemption methods
  • VAT relief on qualifying purchases
  • VAT relief on "relevant charitable purpose" building construction
  • Advising on the correct VAT treatment of income generation and fundraising activities
  • Advising on VAT recovery relevant to trading activities