The latest on the new subscriptions law
An update for members on our work to ensure the Digital Markets Competition and Consumers Act 2024 (DMCCA) allows charitable memberships to thrive.
Fundraising and VAT: What Charities Need to Know
Understanding how VAT applies to fundraising is essential for charities, as many fundraising activities and charitable purchases qualify for VAT relief. While some goods and services can be bought without paying VAT, charities must be able to prove their eligibility and understand when VAT registration is required. This guidance outlines the key points and signposts you to HMRC information and practical resources to help you stay compliant.
Fundraising and charitable activity is, in general, exempt from the payment of VAT. As a charity you don’t pay VAT when you buy some goods and services.
You must prove to the person who’s selling the goods or services to you that you’re eligible for relief.
You must register for VAT if your charity’s VAT taxable turnover (the total value of everything you sell that isn’t exempt from VAT) is more than £85,000.
You can choose to register if it’s below this, for example if you want to reclaim VAT on your supplies.
For all information on what VAT rates charities pay look at the information on HMRC’s pages.
For more information on tax for charities, including VAT, take a look at the ‘Tax Made Simple’ guides from Sayer Vincent.
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