VAT Reliefs for Charities

There are a number of 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. This can, therefore, result in significant cost savings.

  • Property rental, either a lease, or one-off use of a room;
  • Advertising, including online advertising;
  • The 5% reduced rate applies to the installation of energy saving materials (this provision will be withdrawn during 2013);
  • Work required by the Disability Discrimination Act is zero rated.

Some sources of income are also VAT free, being either zero rated, or VAT-exempt.

  • The sale of donated goods is zero rated.
  • Income generated at fund-raising events is exempt.
  • Membership subscriptions can be exempt.

Please note that various conditions and exclusions apply to all these reliefs. Fuller advice should be taken in each case.

Need VAT Advice?

If you’re not sure about whether these Charity VAT Reliefs apply to your organisation, then get in touch with us with any questions.

More VAT Advice for Charities

More information is available from our VAT for Charities page.