V5.162D VAT refunds for certain charities
Finance Act 2015 s 66 introduces two new sections in VATA 1994, s 33C provides for refunds of VAT to certain charities; s 33D sets out those charities ('qualifying charities') to which s 33C applies.
A qualifying charity may make a claim, at such time and in such form or manner as HMRC may determine, ie in Box 4 of the charity's VAT return or, in the case of a charity which is not registered for VAT, on form VAT 126 which should be sent to1:
HM Revenue and Customs
Miscellaneous Charges Unit
Note that a charity which has been granted exemption from registration on the grounds that it makes wholly or mainly zero-rated supplies must register for VAT before a claim may be made2.
A claim may be made for the refund of any VAT incurred on3:
• the supply of goods and services to the charity
• the acquisition of goods from another member state by the charity, or
• the importation of any goods by the charity
where the supply, acquisition or importation is not for the purposes of any business carried on by the charity (non-business use does not include private use). Where there is mixed use, an apportionment must be made. The claim may not include any VAT which would be blocked under the provisions described in V3.441–V3.446. In addition, the charity must4:
• place the order
receive the supply
• receive a tax invoice addressed to the