- HMRC published a brief on VAT treatment for charity fundraising events.
- VAT exemption applies if the event’s primary purpose is fundraising.
- The Upper Tribunal confirmed that an event can have multiple primary purposes.
- UK law was found incompatible with EU law regarding event promotion for fundraising.
- UK legislation can be interpreted to align with EU law by removing the word primarily.
- HMRC policy requires events to be advertised as fundraising events.
- Objective documentary evidence is needed to prove fundraising as a primary purpose.
- Charities must provide evidence if an event has multiple primary purposes.
- HMRC guidance on charity fundraising events will be updated accordingly.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
