How VAT affects charities
This notice cancels and replaces Notice 701/1 (October 2014).
1.1 What this notice is about
This notice explains:
• what a charity is
• how VAT affects charities
• how a charity's income is treated for VAT purposes
• what VAT reliefs a charity can obtain on its purchases whether or not it is registered for VAT
You can find an explanation of the terms used in this notice at section 9.
Because of the diversity of activities undertaken by charities it is not possible to cover every situation within this notice, contact Charities and Community Amateur Sports Clubs.
If you find that the area you're interested in is not covered by this notice contact VAT general enquiries.
Main narrative treatment—V2.232, V6.184–V6.185.
1.2 Who should read this notice
You should read this notice if you're either:
• involved in a charity
• involved in a business who makes supplies to or has other dealings with charities
• a fund-raiser for charities
• a user of charity services
1.3 The law covered in this notice
Because of the diversity of activities undertaken by charities it is not possible to list every relevant section of legislation. The areas of legislation offering specific reliefs to charities are as follows:
VATA 1994 s 29A reduced-rates goods and services listed in Sch 7A to the Act.
The supply to charities of fuel and power in buildings used by charities for non-business purposes is reduced-rated under Group 1 of Sch 7A.
VATA 1994 s 30 zero rates goods and services listed in Schedule