Commentary

V4.266A Donated goods, exports, advertising, medicinal products etc

Part V4 Exemption, zero-rating and reduced rates

V4.266A Donated goods, exports, advertising, medicinal products etc

V4.266A Donated goods, exports, advertising, medicinal products etc

This paragraph examines the items which are zero-rated by virtue of VATA 1994, Sch 8 Group 15, Items 1–10. These items cover a number of supplies made both to and by charities. In particular, the paragraph considers:

  1.  

    •     the supply of donated goods (Items 1, 1A)

  2.  

    •     the donation of goods (Item 2)

  3.  

    •     exports (Item 3)

  4.  

    •     relevant goods (Items 4–7)

  5.  

    •     media advertising (Items 8, 8A, 8B, 8C)

  6.  

    •     medicinal products for care, treatment or research (Items 9 and 10)

A number of definitions are relevant to these items. Definitions relevant to VATA 1994, Sch 8 Group 15 are covered at V4.266.

For an overview of zero-rating in connection with charities and non-profit bodies more broadly, see V4.261.

Supply of donated goods (items 1, 1A)—donated goods, advertising and medicinal products (zero-rating)

A supply of goods is zero-rated under VATA 1994, Sch 8, Group 15, Items 1 or 1A if it fulfils all of the following1:

  1.  

    •     it is made by either:

  2.  
    1.  

      –     a charity (see definition at V4.266)

    2.  

      –     a profits-for-charity person in respect of those goods (see definition at V4.266)

  3.  

    •     it comprises a sale or letting on hire of the goods

  4.  

    •     the goods have been donated to the charity or profits-for-charity person (see definition at V4.266), as the case may be

  5.  

    •     the goods were donated for sale, letting, or export, or any combination of these

A supply of goods falls outside these items if either:

  1.  

    •     the sale of

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