HMRC’s new VAT guidance for charities

HMRC has updated its guidance on VAT for charities, replacing the guidance which had been in place since January 1995. The updated guidance includes an introduction to VAT for charities and provides information on the implications of VAT for charities, the VAT treatment of income received, VAT reliefs on purchases, fuel and power, and charity events. To access the updated guidance, please click here.

Please note that the Charity Tax Group has issued a health warning, having noticed that only certain parts of this VAT guidance have been updated, with some parts of the guidance remaining out of date. If you are using the Guidance, please double check with your accountant or other VAT specialist before relying on the information it contains, until HMRC releases a completed update.