HMRC Updates VAT Exemption Guidelines for Charity Fundraising Events After Tribunal Ruling

• 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
• Constable VAT

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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