VAT refund scheme s 33C and s 33D charities

Produced by Tolley

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

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

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

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