Understanding VAT Obligations and Reliefs for Charities in the UK

• Charities in the UK are not automatically exempt from VAT and must register if taxable turnover exceeds £90,000.
• Registering for VAT can be beneficial even if turnover is below £90,000, as charities can reclaim VAT on purchases and operating costs.
• Charities can benefit from VAT reliefs by providing evidence of charitable status, allowing for reduced or zero rates on certain goods.
• Goods eligible for reduced or zero rates include medical equipment, goods for people with disabilities, certain advertising, and fuel for non-business activities.
• Maximizing VAT recovery is crucial, and working with experts can help charities recover more VAT than expected.
• Forming a VAT group registration or negotiating VAT allocation methods can improve recovery rates.
• Many charities miss opportunities for VAT recovery due to misconceptions about registration requirements.

Source: wrpartners.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.

---

---