VAT for Charities

VAT is an enormous burden on this sector. Charities are generally subject to the same VAT rules as any other organisations, but suffer from a restriction on VAT recovery due to their ‘non-business’ activities and also (usually) partially exempt status. There are also, however, a number of VAT reliefs and exemptions available specifically for charities, subject to certain conditions and restrictions. In addition, the 2015 Budget extended the scope for certain charities to reclaim VAT attributable to their non-business income.

This course provides clarity on how charities should arrange their affairs to take the most advantage of these VAT reliefs, optimise VAT recovery, and avoid costly pitfalls, particularly on high value projects.

This course assumes a good knowledge of VAT generally, and is intended for those advising charities including anyone who needs a thorough understanding of VAT in this sector.

What You Will Learn

This course will cover the following:

  • The EU background and charity VAT law
  • The distinction between business and ‘non business’ activities and the VAT effect
  • The 2015 Budget changes for certain charities
  • Supplies – Getting the VAT liability right on various income streams
    • VAT and charity fundraising
    • True grants, donations and legacies
    • Admission charges and donations in lieu
    • Charity shops
    • Exemptions for cultural and sporting activities
    • The exemptions for health, welfare and education
    • Affinity credit cards
    • Supplies of staff
  • Land and property
    • Zero rate for construction of relevant residential and relevant charitable buildings
    • The VAT option to tax – what it covers and what it does not
    • Disapplying the option to tax on relevant charitable buildings
    • The VAT Capital Goods Scheme
  • Cross border supplies
    • A review of the rules for goods and services
    • The reverse charge
  • VAT on Costs
    • VAT reliefs on charitable expenditure, eg. advertising
    • The 5% reduced rate
    • Claiming the right amount of input tax
      • Correct invoice evidence
      • Blocked input tax
      • Direct attribution
      • Business: non business apportionment
      • Partial exemption- the standard and special methods

Prices (ex VAT)

MBL SmartPlan Members: £216

MBL Season Ticket Members: £240

Non Members: £480

 

For dates/locations and booking information please follow the link:

VAT for Charities

More Events