A. It is a common misconception that charities have exemption from VAT in most areas of their purchasing. In fact, the reliefs for VAT available to charities on their purchases are somewhat limited and details of the reliefs available can be found in VAT Notice 701/1 (sections 6 and 7). Where a charity is having a building constructed for a relevant charitable purpose (see Notice 708 s14.7 for the definition) and issues a certificate to the building contractor to that effect, then the construction work can be zero-rated. However, zero rating for approved alterations to a listed building ceased on 1 October 2012, with transitional relief for projects in being at that date expiring at 30 September 2015. This means that the charity’s refurbishment and alterations to their listed property will be standard rated.
If you have a VAT query why not contact the VAT Advice Line on 0844 892 2470 to discuss the implications. Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.
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