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VAT Compensation Scheme for charities

  1. Overview
  2. Qualifying conditions and supporting documentation
  3. What you need to calculate the claim amount
  4. What is total income and qualifying income?
  5. What is qualifying expenditure and qualifying tax?
  6. How do you calculate the claim amount?
  7. Making a claim
  8. Guide to making a claim in ROS

What you need to calculate the claim amount

The claim amount is referred to as eligible tax and is the amount which a charity can claim. It is calculated with reference to total income, qualifying income, qualifying expenditure and qualifying tax.

Income and expenditure

In the context of the Charities VAT Compensation Scheme:

  • Income received means actual monies received in the calendar year to which the claim relates.
  • Expenditure paid means actual monies paid out in the calendar year to which the claim relates.

The scheme operates on a cash basis.

  • Example

    Charity A orders goods and services in 2019 but does not pay for them until 2020. These goods and services cannot be included in the claim for 2019 but can be claimed in 2021 in respect of Value-Added Tax (VAT) paid in 2020.

Next: What is total income and qualifying income?

Published: 29 May 2024 Print this page

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