VAT

[polar_ben]

Any VAT specialists around? The total budget for my spring 2004 expedition is around £150k. The expedition will be raising money for at least one charity, and is being run as a Ltd. company.

HM Customs & Excise seem slightly vague about whether or not this constitutes taxable supplies - "fund raising events by charities" are zero-rated (as is gambling )

Any thoughts

[DontLift]

Having done some work in the Gift Aid arena this is a massive grey area.

The charity I have worked with decided to pay the VAT to avoid problems later

[Wacky Racer]

Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.



(The Beatles)

[stc_bennett]

Contact your local VAT office in writing and ask the VAT inspecter to verify if you have to pay VAT or not then you will have a record in your file that you do or do not have to pay VAT.


Hope this helps

Steve

[eric mc]

Agree with STC. The only VAT advice that can be relied on in court is a WRITTEN ruling from a VAT office.

In general, charities are not exempted from VAT. If a charity runs a business side, such as charity shops etc, then these have to charge VAT in the normal way. The problem arises with specific fund raising activities. Generally, if they are one off or rare events, then they are exempt from VAT. However, defining "one off" or "rare" events is where the problems arise.

[stc_bennett]

Cheers Eric, i had to get written autherisation as i sell a lot of digital media to the US and hence required confirmation if to charge VAT. As this was a grey area in the VAT Book.

Steve