Recent research undertaken for the Charity Tax Group estimated that: –
- charities lose £1.8 billion per year by being unable to recover all of the VAT on the goods and services they buy
- a significant proportion of the £1.7 billion output VAT charged by charities each year is absorbed by charities rather than being passed on to their ‘customers’ and therefore is a burden on the charity sector
- VAT reliefs on purchases by charities are estimated to be worth £1.0 billion annually for the sector
A suggested 3 step plan for Charity Finance Teams
Source: albertgoodman.co.uk
