- 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.
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