- HMRC issued guidance on VAT exemption for charity fundraising events.
- VAT exemption applies when the primary purpose is fundraising and events are promoted as such.
- Upper Tribunal clarified events can have multiple primary purposes and still qualify for VAT exemption.
- UK law’s requirement for events to be promoted primarily for fundraising is incompatible with EU law.
- HMRC insists the primary purpose must be fundraising and events must be advertised as such.
- Charities must provide evidence of fundraising purpose and explain why purposes cannot be separated.
- HMRC will update guidance to reflect these changes.
Source: deeksvat.co.uk
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.
