VAT for charities

Neil Warren highlights some important VAT concessions available to charities on their overheads and also the exemption on fundraising income which extends to non-profit making bodies

VAT challenges for charities

A very common question I get asked by accountants is as follows: a client is doing some work for or selling goods to a charity and the charity has told the client not to charge VAT because charities are exempt from paying the tax. The finance officer or treasurer of the charity will happily wave a charity number at the client with great enthusiasm and totally believe what he or she is saying. Unfortunately, such claims of universal VAT exemption are wildly inaccurate!