Q – “I’m a charity, do I have to pay VAT?“
A – Yes, A charity will pay VAT on all standard-rated goods and services they buy from VAT-registered businesses.
Q – “I’m a charity, do I need to register for VAT?“
A – As a charity, you must register for VAT with HM Revenue and Customs (HMRC) if your VAT taxable turnover is more than £85,000.
Q – “What qualifies for the reduced VAT rate?“
A – Fuel and power qualifies for the reduced rate of 5%.
Q – “What qualifies for zero rate VAT?”
A – There are several categories of expenditure which can qualify for zero rate VAT. However, you should check the Charity Commission guidance for the conditions you must meet so to pay no VAT.
Q – “How can I claim VAT relief?”
A – You must be able to evidence you are a charity and that you’re eligible for the relief.
Q – “What activities are exempt from or outside the scope of VAT?”
A – You can not charge VAT on exempt goods and service. Income from non-business activities is considered outside of scope.