Charity VAT Recovery - Input Tax Recovery

A significant issue affecting charities is the cost of irrecoverable VAT. This is a direct consequence of a charity receiving charitable (ie: non-business) income. Many charities also receive VAT-exempt income, which further restricts the recovery of input tax.

VAT Regulations require charities to establish a Special Method, by which they calculate their recoverable input tax.

It is important that any Special Method is planned carefully, as it will apply perhaps for several years.

Ideally, it should be easy to operate, and easy to check! Regulations require that it must be 'fair and reasonable,' which is ultimately determined by HM Revenue & Customs.

I have experience in designing and negotiating Special Methods for charities.

An existing Special Method can also be reviewed and, depending on the circumstances, improved.

Extra Help for your Charity?

Need more VAT advice on charity vat recovery? Then contact me for more information.

Further Information

For further information and helpful articles see my charities and VAT page.