Charging a Charity VAT

[HamsterMind]

We are a VAT-registered business providing technical services within Ireland.

After sending a client an invoice for work done they asked if I could re-issue the invoice to bill a partner-entity who are a registered charity (number provided) and specifically could I not charge them VAT. They said that I could elect not to charge them VAT.

I checked Revenue.ie which confirms that (a) the named charity has a charity number, and that (b) Charities are not VAT exempt.

I have no interest in messing around with under the counter stuff but don't want to be making life difficult for the charity if there is contrary standard practice.

Does anyone have any experience of this?

Hamster

 

[Brendan Burgess]

Hi

Charitable status has no relevance for VAT purposes.

You must charge VAT to any company or individual unless they provide you with what is known as a "Vat exemption certificate".

If you have supplied a service, I suppose that the customer can say which part of the entity should be invoiced.

Charities may [broken link removed] on the following activities, but that is up to them. You must still charge them VAT:


1. Organisations involved in the transport of severely and permanently
physically disabled persons
2. Radios for the blind
3. Appliances for use by Disabled Persons
4. Sea rescue craft and equipment
5. Humanitarian Goods for Export
6. Donated medical equipment
7. Donated Research Equipment

 

[anan]

Unfoturnately, the charity has to pay the VAT and there is no other option.

I was told that revenue is looking at revamping the VAT structure and hopefully there will be no VAT for charities in the years to come. I think we need it high time.

The charity that I am involved with bought a commercial property recently and had to shell out a huge sum for VAT. Only consolation is that they are exempted from stamp duty.