The UK tax authority HMRC has issue VAT Notice 1001 giving details of the VAT rules where charities can obtain VAT refunds under legislation effective from 1 April 2015. Charities that qualify under the new rules can claim a refund of VAT on most of the goods and services supplied to them in relation to their non-business activities.
The new VAT Notice gives details of which charities can use the refund scheme; what they should do if their circumstances change; items that are within the scope of the scheme; and the procedure for making a refund claim. Qualifying charities fall within four categories – palliative care charities; air ambulance charities; search and rescue charities; and medical courier charities.
An important point about the new scheme is that a qualifying charity can make a VAT refund claim under the rules even if it is not registered for VAT.
