Understanding VAT: Income Outside the Scope and Its Impact on Charities and Grants

• Income outside the scope of VAT is UK VAT free
• Can be non-business income or income with a place of supply outside the UK
• Different from exempt or zero-rated supplies
• Impact on entity involved in non-business activities
• Charities often receive non-business income which is outside the scope of VAT
• Grants have varying VAT treatments depending on the agreement
• Inter-company charges within VAT groups or non-VAT-grouped companies may be outside the scope of VAT

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.

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