HMRC internal manual VAT Charities

VCHAR8000 – Free export of goods

Like purely commercial organisations, charities sometimes sell goods to customers outside the UK. In such circumstances the normal export rules apply. However, charities (primarily those engaged in international relief) will sometimes export goods to disaster areas. For example, medical equipment, tents, blankets, food etc. These exports are likely to be made up of goods that have been donated to the charity and goods that the charity has purchased for the specific circumstances of the particular disaster.The supply of these goods by the charity will be free of charge. As such the supply would not normally qualify as a business supply. This would mean that the charity was unable to recover any input tax incurred on the purchase or export of the goods.

Source HMRC



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