This guidance note covers the special VAT refund scheme that applies to palliative care, air ambulance, search and rescue and medical courier charities.
For in-depth commentary on the legislation, see De Voil Indirect Tax Service V5.162D.
VAT refund scheme for charities - the basics
A special VAT refund scheme allows certain types of charity to recover the VAT that they incur in relation to their non-business activities.
The scope of the refund scheme is narrow as it applies only to palliative care, air ambulance, search and rescue and medical courier charities.
The mechanism by which the refund is claimed depends on whether a charity is VAT registered. VAT registered charities make a claim via their VAT returns whilst unregistered charities must submit a Form VAT126
Charities which qualify for the scheme
The special VAT refund scheme for charities is limited to certain types of charity. These are as follows:
| Type of charity | Description |
| Palliative care charities | The main purpose of these types of charities is to provide palliative care under the supervision |
Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Access this article for free with a 7 day trial of Tolley+™ Guidance and benefit from:
- Expert practical tax guidance
- Ready-made templates, step-by-step-guides, interactive flowcharts and checklists
- The latest news updates, insights and analysis
Popular Articles
Residential property and capital allowances
Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a
Qualifying charitable donations
Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’
Exemption ― overview ― items exempt from VAT in the UK
Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading
