VAT reliefs available to charities on purchases
Charities may be able to obtain VAT relief on purchases of the following goods and services, whether or not they are registered for VAT:
- Advertising and goods connected with collecting donations - Notice 701/58
- Aids for the disabled - Notice 701/7
- Building and construction - Notice 708
- Drugs and chemicals
- Energy saving materials
- Equipment for producing talking books and newspapers
- Lifeboats, slipways and launching recovery equipment
- Medical and scientific equipment
- Charity funded equipment for medical, veterinary etc uses - Notice 701/6 Medicinal products
- Rescue equipment
- Resuscitation training models
VAT does not operate on a refund basis. To claim each of these VAT reliefs your charity will need to complete a separate eligibility declaration. You give the eligibility certificate to the supplier who will not charge VAT on your purchase (as long as all the conditions relating to the relief have been met). The VAT notices relating to specific purchases contain eligibility declaration certificates for you to complete.
Reduced rate VAT on fuel and power
Charities can receive supplies of fuel and power at the reduced rate of VAT where it is supplied for non-business activities. Your charity should provide the supplier with a certificate to declare what percentage of each premises is - or will be - put to a qualifying use. Your must provide a separate certificate for each supply of fuel and power to separate premises.
If your charity carries out business and non-business activities in the same premises, provided at least 60 per cent of your activity is non-business you will qualify for reduced rate fuel on your whole bill. If non-business activities account for less than 60 per cent of your activities, you’ll qualify for reduced rate VAT on the non-business activity portion and standard rate VAT on the rest. For more information please see VAT notice 701/19 - reduced rate fuel and power.
Goods imported from outside the European community
Charities may also be able to claim relief from VAT on certain goods imported from outside the European community, whether or not the charity is VAT registered. Please see VAT Notice 317 - imports by charities free of duty and VAT.
