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HMRC internal manual

VAT Charities


Scope of this guidance

This guidance is aimed at HMRC staff and should not be relied upon by businesses in calculating their taxes and/or duties


General background information on charities and VAT is in VCHAR2000

Law and regulations

Due to the diversity of activities undertaken by charities it is not possible to list every section of legislation that might be relevant (but please see VCHAR16000 for a more comprehensive cross-reference to the legislation). The areas of VAT Act 1994 offering specific relief to charities are:

Group Schedule Relief
1 7A Reduced rate for fuel and power in buildings used by charities for non-business purposes.
4 8 Zero rates the supply to a charity of talking books for the blind.
5 8 Zero rates the first grant of a major interest, or the construction of a building used for a solely charitable purpose.
8 8 Zero rates the supply to a charity of sea rescue equipment.
12 8 Zero rates the supply to a charity of aids for use by disabled people.
15 8 Zero rates supplies of certain goods and services by and to charities or with funds provided by charities.
7 9 Exempts supplies of welfare by charities.
12 9 Exempts fund-raising events held by charities.