Commentary

V7.467 VAT issues on expenditure of a charity

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.467 VAT issues on expenditure of a charity

Part V7 Tax planning | Commentary

V7.467 VAT issues on expenditure of a charity

It is important that a charity identifies possible sources of expenditure that are either zero-rated or exempt from VAT (or subject to reduced-rate VAT) because most charities will not be in a position to reclaim all of their input tax. This is because some input tax will probably be attributable to either non-business activities or exempt supplies (or a combination of both).

In general terms, the following main categories of goods and services are specifically zero-rated if supplied to a charity – specific details (if appropriate) can be obtained by reference to relevant HMRC public notices (eg 701/7/19 'VAT reliefs for disabled people') or by contacting the VAT Helpline (0300 200 3700):

  1.  

    •     talking books for the blind and disabled

  2.  

    •     wireless sets for the

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