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Written question asked by Dan Jarvis (Labour) on Monday, 5 December 2022, in the House of Commons. It was due for an answer on Thursday, 8 December 2022 (named day). It was answered by Victoria Atkins (Conservative) on Thursday, 8 December 2022 on behalf of the Treasury.

VAT: Charities

Question

To ask the Chancellor of the Exchequer, if he will exempt charities from VAT where a minimum donation on goods is required.

Answer

Where a charity chooses to offer its goods or services for free and invites voluntary donations, with no minimum payment required and with no expectation of anything in return, no VAT is charged.


Where the charity wishes to sell its goods and services for a set price, and is VAT registered, it must charge VAT unless a VAT relief exists. There is no VAT due on an amount paid voluntarily over and above the set price.


Charities benefit from a range of tax reliefs, including a zero-rate relief for the sale of donated goods. Costed tax reliefs value these at over £5.4 billion in the year ending April 2022.

While all taxes are kept under review, we have no plans to make changes to the VAT treatment of minimum donations.

Secondary information

Type
Written question
Reference
102921
Session
2022-23
Subjects
Charities Exemptions VAT
Link
View this Written question on www.parliament.uk