VAT on donated second hand clothing and bric-a-brac

Frankie

A ltd Company, not a charity, is donated items for resale and pays VAT (FRS) on the sales of these donated items. The donee's clearly understand that the items and proceeds of sale are donated to support an animal sanctuary. If they were a charity, the proceeds would be zero rated. My question is, does it make a difference if they are a Ltd Company receiving donations or a charity? Surely it's the activity and not the status of the organisation that drives the VAT rate? Any help would be appreciated.

douglasstroud

You need to be a registered charity to gain any of the benefits that go with this status