- Upper Tribunal decision in Yorkshire Agricultural Society case prompts HMRC to clarify VAT exemption policy for fundraising events by charities.
- Charities can exempt supplies of goods and services if events are primarily for fundraising.
- UT decision allows for more than one primary purpose, with fundraising not needing to be the sole purpose.
- HMRC maintains fundraising must be the primary purpose and events must be promoted as such.
- Objective evidence is required to demonstrate the event’s fundraising purpose.
- VAT exemption applies to extraordinary events, not regular or continuous activities.
- Charities should review fundraising activities in light of updated guidance and UT decision.
- Existing limit of 15 events of the same kind in the same location per fiscal year remains unchanged.
Source: saffery.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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