- HMRC has changed a long-standing rule so VAT-registered businesses no longer pay VAT when donating eligible goods to registered charities.
- Previously, such donations were treated like sales if the business had reclaimed VAT on the goods.
- The change is being welcomed as charities are seeing falling donations and greater need.
- The relief applies only to eligible goods used to help people in need or deliver charitable services.
- There is a monetary cap per item, and charities cannot reclaim VAT on the donated goods.
Source: birminghammail.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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