- UK Government proposing changes to VAT rules for charitable donations
- Consultation on new VAT relief measure to encourage businesses to donate everyday items to charity
- Currently, firms do not pay VAT on donated goods that are sold, but must account for VAT if goods are given away for free
- Proposed VAT relief to apply to hygiene items, second hand items from hotels, and cleaning supplies
- Excludes goods donated for charity use, such as new IT equipment
- Proposed VAT relief aims to lower cost of generosity for firms and extend social impact without additional tax expense or administrative burden
Source: answerconnect.cch.com
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.
