A VAT compensation scheme for charities will come into operation in 2019.
A VAT compensation scheme for charities is due to be introduced in 2019, which will relate to VAT expenses incurred in 2018. The scheme was announced in Budget 2018.
Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, up to a total capped fund of €5m.
Work on the introduction of this scheme has been commenced by officials of the Department of Finance and the Office of the Revenue Commissioners. The principles of the scheme have been announced but work on the finer details of the scheme, as well as guidelines for charities have yet to be published. The Department of Finance and Revenue will also consult with the charities sector before the scheme is finalised.
The scheme, including the amount provided in the fund, will be subject to review after three years. Claims under the scheme for 2018 cannot be made until 2019 as it will take some time for Revenue to establish IT and administrative systems.
I welcome the introduction of this scheme, which will help charities across the country to maximise the work they can undertake as a result of funds raised.
VAT refund for Charities
By Sean Canney|
2018-04-18T15:11:52+00:00
April 18th, 2018|Blog, Galway East, Homepage, Information, Latest News|0 Comments