Rotary Club, itself a charity, wants to purchase a coach to hand over to local charity. Any way of avoiding the VAT?
Replies (5)
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Zero rating unlikely
The charity cannot benefit from zero rating unless the vehicle is specially adapted for use by a handicapped person or persons.
Zero rating unlikely
I am inclined to agree with you. The fact that the vehicle is permanently adapted, and supplied to a charity, may open the door to zero rating. However, the fact that the use to which the vehicle is to be put is for the specific purposes of the charity will prejudice zero rating.
Can you create a new eligible body?
Could the outreach project be seperatly identified and put into a separate (charitable) entitiy that would qualify as an eligible body?
Eligible body?
In principle, the eligible body, assuming it is a charity, has to provide care or medical or surgical treatment for handicapped persons (Group 15, Note 4f), and it has to have a day centre, or similar, from which it operates (Notes 4A and 4B). It is possible therefore, but would need some thought if such a centre is not already operated.