Updates to HMRC VAT Notices
HMRC has recently made updates to two important VAT Notices for charities.
How VAT affects charities (VAT Notice 701/1) – Find out what a charity is, how VAT affects charities, how to treat a charity’s income for VAT and what VAT reliefs a charity can get on what it buys.
The business test section (Section 4) was changed to the two stage test policy, to bring it in line with RCB 10(2022).
Goods or services supplied to charities (VAT Notice 701/58) – Find out when you can zero rate VAT for advertisements and goods used for the collection of donations
Sections “Media where charities can advertise VAT free”, “What the term ‘the public’ covers”, “Information on the internet” and “Relief on the design or production of an advertisement” have been updated.