- VAT on eligible goods donated by VAT-registered businesses to registered charities has been removed.
- This could encourage more donations, especially as charity giving has fallen sharply.
- Previously, donated goods could trigger VAT because businesses had reclaimed VAT on purchase.
- The relief has limits, and charities still cannot reclaim VAT on donated goods.
- Charities and not-for-profits should keep detailed records, as HMRC is increasing compliance checks.
Source: scottishfinancialnews.com
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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