VAT refund schemes — charities | Tax Guidance

VAT refund schemes — charities

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note covers the special VAT refund scheme that applies to palliative care, air ambulance, search and rescue and medical courier charities.

For in-depth commentary on the legislation, see De Voil Indirect Tax Service V5.162D.

VAT refund scheme for charities - the basics

A special VAT refund scheme allows certain types of charity to recover the VAT that they incur in relation to their non-business activities.

The scope of the refund scheme is narrow as it applies only to palliative care, air ambulance, search and rescue and medical courier charities.

The mechanism by which the refund is claimed depends on whether a charity is VAT registered. VAT registered charities make a claim via their VAT returns whilst unregistered charities must submit a Form VAT126

Charities which qualify for the scheme

The special VAT refund scheme for charities is limited to certain types of charity. These are as follows:

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