HMRC Updates VAT Exemption Rules for Fundraising Events After Tribunal Judgment

• HMRC published a brief on VAT exemption for fundraising events after a tribunal judgment.
• UK VAT rules exempt charity event supplies from VAT if organized for charitable purposes, primarily to raise money.
• The Yorkshire Agricultural Society case involved whether admission fees to their show qualified for the exemption.
• The First Tier Tribunal ruled in favor of the charity, but HMRC appealed.
• HMRC argued the event was not primarily for fundraising due to educational purposes and promotion issues.
• The Upper Tribunal ruled a fundraising event can have multiple primary purposes, including fundraising.
• The tribunal found UK law’s promotion requirement incompatible with EU VAT rules.
• HMRC accepted the judgment, allowing events with multiple purposes if interlinked.
• Events must be promoted as fundraising, but not necessarily as primarily for fundraising.
• HMRC updated its VAT guidance for charities following the judgment.

Source: tax.weil.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.

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