VAT and charities

There is no general exemption from Value-Added Tax (VAT) for charities. There are, however, specific reliefs from VAT in certain circumstances.

Further guidance contains more detailed information on the VAT treatment of charities.

VAT compensation scheme for charities

The Government has introduced a VAT compensation scheme for charities. This scheme aims to reduce the VAT burden on charities by partially compensating them for VAT paid in the day to day running of the charity. The scheme applies to VAT paid on expenditure on or after 1 January 2018.

You can find more information on VAT Compensation Scheme in the Companies and charities section.