Value Added Tax

VAT refund scheme s 33C and s 33D charities

Produced by Tolley
  • 22 Dec 2021 18:47

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • VAT refund scheme s 33C and s 33D charities
  • Definition of a charity
  • Relevant charities
  • What VAT can be recovered?
  • Hospice charity receiving funding from the NHS, Clinical Commissioning Group and / or local authority
  • What VAT cannot be recovered
  • Business activities
  • Other
  • Recovering VAT
  • Charities registered for VAT
  • More...

VAT refund scheme s 33C and s 33D charities

This guidance note provides an overview of the VAT refund scheme that has been introduced for charities that are defined in VATA 1994, ss 33C and 33D.

Charities not included in these sections are not usually allowed to recover input tax incurred on their non-business activities but they may be entitled to other forms of charitable relief. More information can be found in the Charities ― overview and Charities ― recovering VAT and VAT reliefs guidance notes.

For all other public bodies that are entitled to section 33 refunds, please see the Section 33 bodies ― overview guidance note.

Definition of a charity

The definition of a charity for tax purposes is contained in Schedule 6 and is summarised below:

The charity must be:

  1. based in the UK, Isle of Man, EU, Iceland, Liechtenstein or Norway

  2. established for charitable purposes only

  3. registered with the Charity Commission for England and Wales or another regulator (where applicable)

  4. run by ‘fit and proper persons’

  5. the organisation will need to be recognised by HMRC as a charity if it is not registered as a charity with the Charity Commission for England and Wales. Organisations can apply to be recognised by HMRC as a charity. More information can be found in: Get recognition from HMRC for your charity

FA 2010, Sch 6

Relevant charities

Refunds under the provisions outlined below will only be granted to qualifying charities listed under VATA 1994, ss 33C and 33D, namely:

  1. palliative care charities ― the main purpose of

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information

LEARN MORE LEARN MORE

Popular Articles

Permanent establishment

IntroductionA company that is not resident in the UK will only be subject to UK corporation tax if it carries on a trade in the UK through a permanent establishment. Where it does so, it will be subject to UK corporation tax on all profits that are attributable to the UK permanent establishment.

03 Nov 2021 16:11 | Produced by Tolley in association with Anne Fairpo Read more Read more

Transactions in securities and the Phoenix TAAR on a company sale or winding-up

The transactions in securities (TiS) legislation is anti-avoidance legislation aimed at situations where close company shareholders have engineered a disposal of shares to obtain a beneficial capital gains tax (CGT) rate, ie avoid income tax, on specified transactions.The targeted anti-avoidance

19 Oct 2021 08:18 | Produced by Tolley Read more Read more

Share for share exchange

This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the purchasing company in exchange

10 Jan 2022 15:02 | Produced by Tolley Read more Read more