Invoicing a charity

[Fresher]

If invoicing a charity for travel expenses, do you include VAT even on items that are not VAT-able?

[surgery_cards]

If they are registered charity, then you won't charge them VAT but you should keep a record of their registration number.

[GRDCredit]

If they are registered charity, then you won't charge them VAT but you should keep a record of their registration number.

I think we need a bean counter on this one! If you are VAT registered I don't think there is any relevance to the legal status of your customer - you charge them VAT.

I stand to be corrected however.

[David Griffiths]

Geoff is right on this one - there is no blanket exemption for charities, although some goods and services can be purchased without VAT - see here. (http://www.hmrc.gov.uk/charities/vat/charity-funded.htm)

As far as expenses are concerned, they are all subject to VAT when charged on to a client, even if zero rated on first supply - train and air fares for example.

[Homshaw]

Seem to remember some sort of exemption for advertising - never heard of one for travel expenses

[spidersong]

Seem to remember some sort of exemption for advertising - never heard of one for travel expenses

Travel Expenses in themselves aren't a supply they are a cost component of some overall supply (i.e. no one just provides a service of going on a train journey for you), so can be zero rated when supplied as part of a zero rated service. However there are very few zero rated services to charities.

Services that may be zero rated would largely be:
Advertising
Maintenance of certain medical devices/instruments, rescue equipment, or motor vehicles for carrying wheelchair users.
Certain construction services (adaptations to provide toilet/bathroom facilities for disabled people, new charity buildings)

[Zeno]

If you intend to invoice a charity that you (or more likely the charity) believes fall within the zero rated supplies it is often worth running this by an expert. It is my experience that charities very often get this wrong themselves.

[yorkshirejames]

http://www.hmrc.gov.uk/charities/vat-how-it-affects-charities.htm may assist. I agree with Zeno's advice to get advice.

[Homshaw]

Some while ago I was offered a job doing accounts for a Community Interest Company. When I read up on the VAT it was so involved I refused the job.

What's a donation? What's sponsorship? Have tee shirts got VAT on them? How does a CIC differ from a charity? What a fundraising event?

Couldn't justify the effort for one job and to buy in advice makes the job too expensive for the client. Eventually found an accountant who specialised in CIC's and charities and passed the job on to her