Invoicing a charity
- Thread starter Fresher
- Start date
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.
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.
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.
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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)
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http://www.hmrc.gov.uk/charities/vat-how-it-affects-charities.htm may assist. I agree with Zeno's advice to get advice.
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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
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
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