HMRC’s VAT Notice 701/1 clarifies how Value Added Tax applies to charitable organisations, including the definition of a charity for VAT purposes, how different types of charitable income are treated, and the specific VAT reliefs available when charities purchase goods and services. The notice provides guidance for charity administrators and finance teams managing VAT compliance and maximising available exemptions and reliefs on charitable expenditure.
Source: HMRC (GOV.UK) – Read the original