Does a CIC need to register for VAT if all income is donations/grants/sponsorship? I.e. do donations/grants/sponsorships count as turnover?
I'm assuming no special rules apply to a CIC and so donations and grants are outside the scope of VAT.
Scenario - there is £100k income in one financial year but it's purely made up donations/grants/sponsorship. For CIC's would this count as turnover so you'd need to register for VAT once you got close to £85k? Or is the £100k not considered turnover so the CIC doesn't have to register at all?