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

Frankie Registered Posts: 8
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
    douglasstroud Registered Posts: 295 Dedicated contributor 🦉
    You need to be a registered charity to gain any of the benefits that go with this status
Privacy Policy