Probably because the charity has limited or no income subject to VAT. Many charity activities are funded by grants and donations or are VAT-exempt

For a transaction to be subject to VAT, it must normally meet both of the following conditions: It must be a supply of goods

You must register for VAT if the turnover on taxable activities exceeds the VAT registration threshold. The VAT registration threshold from 1 April 2017

The s33c VAT refund scheme applies to both VAT registered and unregistered eligible hospices, which must be palliative care charities, providing palliative care as

Supplies of education and training are VAT exempt if they are made by an eligible body, otherwise they are standard-rated. Supplies of education and

Where charities have members who have voting or other constitutional rights then a special VAT concession applies (‘ESC 3.35’). This allows the membership subscription

Commercial marathons such as the London Marathon do not qualify for the fundraising event exemption, so any mandatory entry fee or minimum sponsorship target

If a charity has no pre-existing agreement with either the donor or event organiser, and simply receives a donation from the participant or event

Some fundraising events have no restrictions on what Gift Aid can be claimed as no or only very minor benefits are provided to participants.

In general, for a VAT-registered business in the UK: sales of goods and supplies of services overseas are zero-rated purchases of goods from outside

Some supply types from overseas count as a reverse charge purchase, where a UK VAT-registered customer must charge themselves VAT for the purchase and

This determines the VAT treatment, and details are set out in the VAT Directive (2006/112/EC). If the place of supply is: the UK, then

There are three corporation tax reliefs that are likely to be of interest to relevant arts charities: Theatrical productions tax relief Orchestral concerts tax

Arts organisations often seek business sponsorship, for example, to sponsor a specific theatre production or gallery exhibition; to sponsor a new building or wing;

Many arts organisations use patron, friends’ or supporter schemes to obtain financial support. Supporter schemes are often structured as different packages (e.g. “gold”, “silver”,

Under this scheme museums and galleries can claim a refund for VAT incurred in providing free rights of admission. Organisations must apply to join

Gift Aid rules do not allow Gift Aid to be claimed on donated goods, only on monetary donations, which are grossed up by 25%.

Charities are entitled to mandatory rates relief of 80% of any business rates payable but it is only available when the charity is the