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