A Brief Guide to VAT Reliefs for Charities in the United Kingdom

• Charities have to deal with VAT like any other business
• VAT for charities can be complex and time-consuming
• There are a limited number of zero-rated reliefs for charities, including advertising services, purchase of qualifying goods for medical research, and construction of new buildings for charitable activities
• There are special exemptions for supplies made by charities, such as income from fundraising events and admissions to cultural events
• Treating income as exempt from VAT can create additional costs for charities
• The reduced VAT rate of 5% is available for certain circumstances, such as gas and electricity in charity premises and renovation work on unoccupied dwellings
• There are Extra Statutory Concessions that benefit charities, including certain printed stationery and collection boxes
• It is advised for charities to seek assistance on dealing with VAT to minimize tax payments and avoid penalties.

Source: marcusward.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---