I have a charity client who works with another local branch of the same charity. They work together to provide a mobile animal clinic, my client owns the mobile clinic and recieves donations from the other branch for the upkeep/running costs of the mobile. My client will then visit areas in the mobile clinic that the donating branch covers.
Is the donation VATABLE as the second branch is receiving something for the donation or could it be argued that the branches are working together in a mutually collaborative area (Taken from HMRC VAT guidance sonsorship 701/41)
Thanks for any input