VAT for Charities
VAT is an important aspect of your finances and it will impact every organisation in some way.
There are four main areas in which I can provide help with Charity VAT and make you aware of both your obligations and any opportunities that are available to you.
Each of these bullet points leads to an explanatory article to do click them to find out more.
- Charity VAT Recovery - Input VAT (New!)
- Requirements for VAT registration
- Property Acquisition and Development
- Charity VAT - Obtaining VAT reliefs
Involved in a Charity or not-for-profit and in need of some guidance with Charity VAT? Contact me today.
Charities and VAT
I frequently find that charities are over-paying VAT on their costs. In particular, premises costs, such as rent, and gas and electricity provide opportunities for making savings.
Where a building is used for a charitable purpose, even if there is an element of business activity, gas and electricity should only be charged at 5%, not 20%.
You will need to provide a certificate to the suppliers. I can provide a suitable certificate at a sensible cost.
Rent is not so straightforward. This is because the rules mean that, where a charity uses a building for its administrative office, VAT will still apply. However, uses for other purposes mean that any VAT charge can be 'disapplied'.
This also needs a formal certificate to be sent to the landlord/agent.
Issues involving charities and VAT can be complex. If you would like more information on this or any other charity VAT issue, get in touch today.