Vat Exempt - Charity

siva
siva Registered Posts: 54 Epic contributor 🐘
in AAT Level 4 (Level 8 in Scotland)
Hi,

Just confused- if a charity is VAT Exempt, are they exempt from VAT for delivery charges as well.

We have a customer, they are not paying VAT on their delivery charges please help.

Thanks.

Comments

  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
    Hi

    Lets say for example that you invoice a charity for £100 + vat (ie £120). Instead of the charity entering it onto their system as £100 net and £20 vat, they will simply enter it in as £120, using the relevant non vat tax code, such as T9 on Sage.

    It is no different than you sending out an invoice to a non vat registered company.

    So long as your company is vat registered, you can continue to invoice them including vat as that is correct for your business, and you can expect them to pay the full amount.

    The charity I work for only reclaims vat on capital expenditure, but that doesn't exclude us from having to pay invoices in full from our suppliers.

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