VAT exemptions relevant to charities
Cultural performances and exhibitions
Admission charges to museums, galleries, art exhibitions, zoos, theatrical musical or choreographic performances of a cultural nature, put on by public authorities and other eligible cultural bodies can be exempt from VAT. For more information about what counts as an eligible cultural body please see VAT Notice 701/47 'Culture'.
However, exemptions will not apply if:
- the admission rates risk unfairly distorting competition
- the public body puts on a joint venture or profit/income-making arrangement with anyone other than another public or eligible body.
There is no exemption for associated goods that may be sold, but some, such as programmes, will already be zero rated because they are printed matter.
Supply of welfare services
If your charity provides welfare services those supplies are business activities
that may be exempt from VAT.
If, however, your charity supplies welfare services at consistently below
cost you can treat those supplies as non-business and therefore outside the
scope of VAT.
For more information about VAT exemptions for welfare services please see VAT Notice 701/2 ‘Welfare’.
Fundraising events
Income from fund raising events is exempt from VAT, provided the event meets certain conditions and people attending or participating are aware of its primary fund-raising purpose.
Sponsored events can also be covered by this exemption, but not commercially organised sporting events and adventure challenge events.
(Activities of a semi-regular or continuous nature – eg frequent operation of a shop or bar - don’t count as events, and income from social events which incidentally make a profit isn’t exempted from VAT.)
For more information please see helpsheet Fund raising events: Exemption for charities and other qualifying bodies.
