Charities and VAT

UK registered charities aren’t automatically exempt from paying VAT, but there are a limited number of VAT reliefs on purchases available to charities, including those not registered for VAT. There are also some VAT reliefs available to VAT registered charities only.

If your charity has turnover from business supplies that is above the VAT registration threshold you must register for VAT in the same way as any other business.

Once your charity is registered for VAT you will need to carefully consider the income you receive and the supplies you make in order to account for VAT correctly.

For VAT purposes, charitable status is recognised if your charity is registered with the Charity Commission (CC) or the Office of the Scottish Charity Regulator (OSCR) or, if HMRC has recognised your charity for direct tax purposes. For more guidance please see Charitable status and how to apply.

More information

• VAT reliefs on purchases available to charities
• When should charities register for VAT?
• VAT treatment of different types of charity income
• VAT exemptions relevant for charities
• VAT registered charities – accounting for VAT