VAT Refund Scheme for charities (VAT Notice 1001)

How to use the service

You’re eligible to claim refunds of VAT where your main purpose is to carry out one of the following: co-ordinated search and rescue of persons co-ordinated emergency medical air ambulance activities palliative care activities medical courier activities These will be services that you provide for no consideration, normally because they’ve been funded through grant-in-aid or voluntary donations. This means that you’ll be able to claim a refund of the VAT incurred on the purchases you make to support these, and any other activities that are not carried on by way of business. Main purpose means the primary function of the charity. Governing documents such as a charity’s memorandum and articles of association, constitution, trust deed or declaration of trust and its annual report should refer to the main purpose of the charity. The legislation requires that the ‘main purpose’ is, as applicable, to do the things described in section 1.7 Charities that are included in sections 33C and 33D. In each case we expect that this activity will be the current core activity of the charity, to which other activities are subordinate. For example, we expect that the core activity of an air ambulance charity is to provide emergency medical air ambulance services. We would expect this to be clearly articulated in governing documents such as the charity’s memorandum and articles of association, constitution, trust deed or declaration of trust, and in its annual report. Once the main purpose has been established, it will be clear whether you’re one of the charities described in in section 1.7 Charities that are included in sections 33C and 33D. If you are, you will need to determine which of your activities are not carried on by way of business, and which activities are carried on by way of business. VAT can only be reclaimed under the Refund Scheme described in this notice in relation to purchases made to support non-business activities. The VAT treatment of your income streams (that is,