The s33c VAT refund scheme applies to both VAT registered and unregistered eligible hospices, which must be palliative care charities, providing palliative care as their main purpose. This allows reclaim of some VAT paid on non-business activity purchases from HMRC, whereas for a VAT registered organisation normally only taxable business activity input VAT may be recoverable.
If it is not the main purpose, then it may still be possible to claim under s33c by transferring palliative care activities into a separate charity with palliative care as the main purpose, or by ceasing, reducing of transferring non-palliative services and/or increasing palliative care services so it becomes the main purpose (including changing the objects as required).
