As a charity, you must register for VAT with HM Revenue and Customs (HMRC) if your VAT taxable turnover is more than £85,000.

You cannot register for VAT if all your business activities are exempt from VAT.

If you’re registered for VAT you must send a return every 3 months.

Charging VAT

Once you’ve registered you must charge VAT at the correct rate on everything you supply.

Work out your taxable turnover

To work out your VAT taxable turnover add up the total value of everything you sell in a 12-month period that is not:

• exempt from VAT
• outside the scope of VAT

Check what VAT rate applies to your charity’s activities.

Reclaiming VAT

If you’re registered you may be able to reclaim VAT when you file your VAT Return.

You can reclaim the VAT you were charged on goods and services relating to your taxable business activities.

More detailed information can be found here

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