Registration for charities

Charities and Registration

Generally, many of the activities carried out by charities are considered to be outside the scope of Value-Added Tax (VAT). Charities engaged exclusively in such activities are neither obliged, nor entitled, to register and account for VAT on their income.

A charity can register for VAT in relation to their taxable supplies, subject to the normal rules. Once VAT registered, they must file VAT returns and fulfill all of the other obligations of accountable persons.

Competition with Commecial Traders

In certain circumstances, the activities of a charity may be in competition with commercial traders. The charity may then be required to register and account for VAT on these activities.

Charities and Intra-Community Acquisitions

A charity, or other non-taxable legal person, must register and account for VAT in respect of certain intra-Community acquisitions. The charity must register if they acquire or is likely to acquire more than €41,000 worth of goods from other European Union (EU) Member States in any period of 12 months. Registration for intra-Community acquisitions only does not give VAT deduction rights to these entities.

A charity or other non-taxable legal person registered for VAT in respect of intra-Community acquisitions, or other activities, is obliged to account for VAT on received services from abroad. Where such entities are not otherwise registered for VAT, they are not obliged to register in respect of received services.