VAT Compensation Scheme for charities

How do you calculate the claim amount?

The claim amount is called eligible tax in legislation. This is the amount which a charity may claim under the scheme. This is the amount which is eligible to be claimed based on the level of non-public funding received.

The claim amount or eligible tax for the calendar year to which the claim relates is determined by the formula:

  • qualifying tax x (qualifying income or total income).

It is important to note that the minimum claim which may be submitted is €500 and that the maximum claim from 01 January 2022 is €1,000,000.

The total annual amount available to be paid out under the scheme is capped at €10 million per year. The amount which may be paid to any charity depends on demand from all applicants.

This means that the amount paid by Revenue to any charity may be less than the claim amount.

Next: Making a claim