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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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.