A business can only reclaim VAT on tax deductible expenses used specifically for your business. What constitutes a deductible expense engages a number of factors.
There are a number of specific VAT reliefs designed for charities. These are goods and services purchased by the charity, for which either no VAT applies, or a reduced rate of VAT applies. Some sources of income are also VAT free, being either zero rated, or VAT-exempt. These include:
- The sale of donated goods is zero rated.
- Income generated at fund-raising events is exempt.
- Membership subscriptions can be exempt.
There are various conditions and exclusions apply to all types of VAT relief but investing in understanding where these are can result in significant cost savings. It’s always worth having a VAT relief review, to understand your position and where opportunities may be found and optimised.
Check out our most recent relief projects and how we helped save our clients thousands.
VAT relief is the positive side of Tax – so get in touch to ensure you are optimising any VAT reliefs that apply.