Charity and Not For Profit and VAT Advice

Why is Charity VAT complicated ?                                                           charity VAT

Charities get a raw deal from VAT. There is no automatic VAT exemption and the rules that apply are complex. In fact the UK VAT system
rules that apply to charities and not for profit bodies are probably more complex than those that apply to any other sector.

Not only do charities have to consider if special charity VAT rules apply to them.  They often have to decide if they are in business to start with.

For a summary of some of the issues see my  Charity Guide.

I can provide charity VAT advice on all issues that charities experience. Including:


  • Whether a charity is in business
  • VAT Liability of supplies made by charities
  • The VAT treatment of grants
  • The welfare VAT exemption
  • When charities can buy equipment VAT free
  • Membership subscription apportionments for charities
  • Construction and property questions. Zero rate reliefs.
  • Improving charity VAT recovery – business/non business apportionments
  • Improving VAT recovery – partial exemption special methods
  • The VAT Capital Goods Scheme for charities
  • Charity option to tax questions
  • Whether a VAT group makes sense

Contact Me with Any Questions

If you have any questions or think you may need charity VAT advice then I will be would be delighted to have an initial discussion on a no obligation basis. I enjoy helping charities and if its a question that is very clear and just a case of directing you to a notice or case that is not a problem.  Contact me here

If I cant help you immediately by phone and need to provide formal advice then there are a number of options.

I can undertake a VAT review and produce a report showing your VAT risks and opportunities. The fee for this will depend upon the complexity and  type of report. But the savings I identify  generally exceed the cost of the report and am prepared in some cases to guarantee this.

I am based in South London but provide  charity VAT advice all over the country and my rates are competitive. I am fully insured and not having the overhead costs can provide a better service than larger firms at a lower rate.   You can see what some of my clients say  here

Further Information on Charity VAT

I publish articles on subjects relating to charity VAT on the news pages of my website. I also have a section on how charity VAT works  – see How Charity VAT Works.

Other up to date news on charity VAT issues can be found on the Charity Tax Group website. .  

The following HMRC publications are worth reading.

How VAT works – the basics such as tax points, what is a supply etc. Read the  VAT Guide Notice 700

Basic Charity VAT rules including some of the special zero rates . Read Charity Notice 701/1

Charity Advertising. Obtaining adverts zero rated. Read Notice 701/68 Charity Advertising

HMRC views on the Charity Fund-raising exemption. Read Charity Fund-raising Exemption

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