Liability ― fundraising events

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note explores the liability of income from fundraising events.

For an overview of VAT liability more broadly, see the VAT liability ― overview guidance note.

For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V4.171.

Liability of fundraising ― the basics

Income derived from certain fundraising events can be treated as exempt from VAT. Exemption extends to all income connected with the qualifying event. This includes admission charges but also other connected supplies like sponsorship or goods sold or auctioned at the event.

To qualify for exemption, the event must be organised by certain kinds of person. Those affected are broadly charities and their trading subsidiaries as well as certain other non-profit organisations. In addition to being organised by the right type of person, further criteria must also be met. Notably, the event must be organised for charitable purposes, its primary purpose must be the raising of money and it must be promoted as such (albeit there has been some debate over the validity

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Associated companies ― from 1 April 2023

Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation

22 Mar 2021 10:21 | Produced by Tolley Read more

Trusts and Inheritance Tax

Outright gifts

Outright giftsAn outright gift is the most straightforward type of gift. It simply involves the outright transfer of property from one person to another with no conditions attached.This type of gift is most suitable for clients who want to pass over modest amounts, or give to responsible and capable

14 Jul 2020 12:22 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more

Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more

��ɫ��