Sector summary ― charities

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Sector summary ― charities

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note provides a summary of key VAT issues of relevance to the charity sector.

Areas covered include:

  1. an introduction to the sector

  2. the VAT meaning of a charity

  3. business and non-business activities

  4. the link between supply and consideration (including grants, donations and sponsorship)

  5. the VAT liability of a charity’s business supplies

  6. registering for VAT

  7. VAT reliefs for charity expenditure

  8. land and property

  9. the implications of incorrectly claimed VAT relief

  10. VAT recovery — including non-business expenditure, partial exemption and the charity special refund scheme

  11. key case law

Introduction to the sector

Amongst non-VAT specialists there is sometimes, an assumption that charities do not pay VAT or are not really affected by VAT. This assumption is false.

The charity sector faces some of the most complex VAT issues of any part of the economy.

In addition to other considerations, a typical charity will have to make difficult technical decisions about:

  1. whether income is derived from a ‘business’ activity

  2. the

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more Read more

Gilts

Gilts‘Gilts’ are securities that are also known by a number of different names (eg gilt-edged securities, Government securities or treasury stock).The Government sells gilts to fund the deficit between public spending and tax receipts. Normally, the Government pays interest to the holder of the gilt

14 Jul 2020 11:48 | Produced by Tolley Read more Read more

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more