VAT Relief for Charities


If an organisation receives income over the current VAT threshold from business activity (that is trading activity) it may need to register for VAT. However, registered charities may qualify to claim VAT relief.


Charities may be able to claim VAT reliefs on certain purchases whether they are VAT registered or not. For example you may be able to buy goods and services without paying any VAT, or paying a reduced VAT rate.


Your group can also register for VAT if your income from trading activity is below the current VAT threshold.  This means you will be able to reclaim VAT on purchases related to the business activity, however you will also need to charge VAT on taxable supplies.