VAT EXEMPTION - Registered Charity supplies

[Silvabod]

A tax-exempt individual can provide form R85 to get tax-free (i.e gross) interest - that Inland Revenue.

Is there a similar form or method for a Registered Charity to provide to suppliers in order to get VAT-free supplies, rather than reclaim VAT later?

[cassa333]

There is.

I shall ask our treasurer and try to get back to you. Don't hold your breath though as he is reliably SLOW in replying

[kempie]

http://www.hmrc.gov.uk/vat/charities-zero-rate .htm

[cassa333]

I ahve a copy if you want one.

[Silvabod]

cassa333, yes please!
How do I contact you privately to get it?

Description of our small charity may be helpful
Just after WWII, a benefactor set up a trust in perpetuity donating land and buildings in Trust, as a Memorial Association, to provide sports and recreation facilities.

It is a registered charity - there is a club and hall which provides many indoor activities, plus, football, cricket and (lawn) bowls on adjoining land.
All sports sections are self-governing. Two considerations - all members of these sections MUST also be a member of the Memorial Association, PLUS each has a Committee member sitting on the Trust Management committee.
Each Section is self-funding via membership fees and event fees - each has its Committee, Secretary, Treasurer and accounts (audited annually).

I'm not a "charity" expert, but am well versed in business commercial systems at a high level (many years in a multi-national).
Looking at this overall set-up, I believe that the Sports activities are part and parcel of the overall Trust (and having looked on-line at the link given in an earlier reply) are within the scope of VAT exemption).
It has already been established within the Association that CAPITAL equipment used on the Bowls green is VAT-exempt.
The Bowls green costs several thousand pounds a year to maintain to County standard.
It is my belief that "running costs" (fertiliser, seed, mower fuel and servicing, etc etc all exclusively used/paid for by the Bowls section) should also qualify for exemption.

If this is correct, I would like to establish VAT-free supplies via the form requested. I am a member (and new Auditor) of the Bowls Club section - am at this stage unsure whether the umbrella Association is actually registered for VAT. However, it's the "charity" status which would provide exemption if it is applicable.

[Skyline D]

I would be surprised if "running cost" items qualify for VAT exemption in the circumstances described. In my experience they don't.

However, I'd be pleased to hear otherwise so keep us posted.

[Silvabod]

For TAX purposes, rules are that expenses wholly incurred are allowable for
I'm hoping that similar rules apply for VAT - the bowling green and clubhouse dedicated to bowling, no external activities , Both are totally enclosed and secured, access locked 24/7 except for matches and maintenance. IMHO "maintenance expenses" for this 100% dedicated green should therefore be VAT exempt. I live in hope - await sight of the relevant VAT guide/info promised by cassa333

[Skyline D]

I've worked with and on behalf of several charities. If the charity itself is not a vat registered trading charity and therefore isn't able to just reclaim the vat paid against vat due then I've never heard of it being able to obtain expenses vat exempt except for certain specific ones laid down in guidance such as printing, advertising, building works to convert for disabled access, that kind of thing.

As I said, I'd be delighted to hear otherwise though.

[Silvabod]

I apologise - thought I had made it clear that the Charity IS VAT-registered (post 30 Oct, 10.30 included the statement that Capital equipment cost has been VAT-exempted).

Have since discovered that other substantial "green" expense (seed, dressing etc) - single invoices of several hundreds of ��) has also been secured, free of VAT.

What I'd like please is specific advice as to the form required to provide "regular" suppliers to ensure monthly charges are supplied VAT-free. It seems that this is being overlooked (or is too much effort) for our"umbrella" charity office, but agged up, it's a potential few hundred pounds saving potential.

The "pre-registering" form to ensure VAT-free supply would save them the effort, (and us, the cash).