VAT relief eligibilty for charity buying minibus

VAT relief eligibilty for charity buying minibus

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I would like some clarity regarding the rules associated with declaring Vat relief eligibilty where a charity wishes to buy a minibus for the purpose of undertaking its regular pick ups/ drop offs and other travel arrangements for its many service users, who are classified as disabled (adults with learning difficulties and physical disabilities). Whilst notice 701/7 would appear to exclude this on the basis of not being for personal and domestic use, notice 701/6 does suggest the charity would be eligible.

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chips_at_mattersey
By Les Howard
15th Sep 2014 10:44

Charity Minibus

Zero rating is available subject to specific conditions:

- is the charity an eligible body? From your comments, this is fulfilled.

- is the vehicle purchased with charitable funds? This is slightly more complex, as the legislation and guidance is rather circuitous. The key is that the funds were raised by the charity, or raised on behalf of the charity.

- is the vehicle an eligible vehicle? This is where Notice 701/6, para 4.7 applies. The numbers of seats, etc. is a matter of fact. If you are able to confirm this, then you will be eligible for zero rating.

- and do ensure that there is a certificate issued to the supplying dealer.

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Replying to SWAccountant:
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By SKKFMS
16th Sep 2014 18:58

 Thank you for your reply.

 Thank you for your reply.

 The second point being that the purchase is from charitable funds, well I think in the circumstances, the charity would qualify, given that funding for day services includes the cost of transport and that the local authority, from whom much of the funding is derived is fully aware of our charity status.

Finally, I have obtained a declaration certificate D, which would be appropriate, i.e. for an unadapted vehicle.

Once again, thank you for your assistance.

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