This paragraph explores the definition of a 'charity' for VAT purposes.
Background to VAT and definition of charity
The term 'charity' is used throughout the VAT legislation. Notably, whilst there is no blanket VAT exemption of relief for charities, a number of VAT reliefs are contingent on the supplier or the recipient of the supply being regarded as a charity for VAT purpose.
Following the CJEU's judgment in Persche1 the UK was obliged to amend its definition of 'charity' for VAT purposes so as to open up charitable tax reliefs to eligible European organisations. Consequently, and with effect from 1 April 20122, a separate definition of 'charity' for VAT purposes is contained in FA 2010, Sch 6.
Legislation was introduced in Finance (No 2) Act 20233 to amend the FA 2010, Sch 6 definition so as to restrict VAT (and
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