VAT and charities

There is no general exemption from Value-Added Tax (VAT) for charities. There are, however, specific reliefs from VAT in certain circumstances.

VAT compensation scheme for charities

The Government has introduced a VAT compensation scheme for charities. This scheme aims to reduce the VAT burden on charities. This is achieved by partially compensating them for VAT paid in the day to day running of the charity. The scheme applies to VAT paid on expenditure on or after 1 January 2018.

You can find more information on VAT Compensation Scheme in the Companies and charities section.