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New VAT Relief for Business Donations to Charities Effective April 2026: No Charge on Gifts

  • From 1 April 2026, businesses can donate goods to charities for use in their charitable activities without incurring a VAT charge.
  • Previously, VAT relief only applied if goods were donated for resale, export, or letting by the charity.
  • The new relief covers most goods up to £100 per item, and up to £200 for white goods, furniture, computers, and mobiles.
  • Tobacco, vaping, and alcohol products are excluded from this relief.
  • Charities can now encourage donations for direct charitable use without donors facing VAT charges, provided the value limits are met.

Source: menzies.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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