The government released a policy paper announcing a future consultation on the VAT treatment of charitable donations. They plan to introduce a targeted VAT relief for low value goods donated by businesses to charities for free distribution to those in need. A press release confirmed the new VAT relief and stated that the consultation will be launched before July 23, 2024, with the conclusion to be announced at a later fiscal event. The relief will not apply to goods donated for the charity’s use, such as new IT equipment, in order to prevent VAT avoidance. The consultation will seek views on this issue.
Source KPMG
Latest Posts in "United Kingdom"
- Keir Starmer Faces Criticism for Not Ruling Out VAT Increase Amid £30bn Financial Gap
- ICS2 Implementation Delayed: Businesses Can Use ICSNI for ENS Declarations Until December 2025
- First-tier Tribunal Rules Nitrous Oxide Not Zero-rated for VAT as Food Ingredient
- Understanding HMRC’s GfC14: Tax Reliefs and Compliance in Freeports and Free Zones
- UK Chancellor Considers Adjusting VAT Nil-Rate and 5% Rate for 2025 Budget Funding
