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Comment 19th July 2010

Voluntary Sector organisations pay VAT unless they sell products or services, often through a shop. Local authority education departments seem to be VAT exempt which can give unfair advantage to local authorities.

VAT returns are onerous, and often stop smaller charities registering, unless they are fortunate to afford the services of an accountant.  If charities could be registered with a VAT exemption number which would be quoted to suppliers, then the VAT burden could be removed helping small and medium sized charities to be more competitive in pricing  of their services.

Why does this matter?

To enable voluntary sector organisations to ensure their funds are used for service delivery and enable them to compete fairly for new contracts

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