VAT Compensation Scheme for Charities

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 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.

Reference to income received or expenditure refers to transactions related to the claim.

The scheme operates on a cash basis.

Next: What is total income and qualifying income?