My client, a registered VAT business, is looking to organise and host a charity ball for a local children's hospital (which treated their child when they were younger). The business will cover the costs of the ball and money raised from any ticket sales will be donated to the charity. My question is how do we treat the VAT? My first assumption is that the tickets for the event will need to be standard rated, as they provide a direct benefit to the purchaser, however, is there some exemption in respect of these being in aid of charity, or are the exemptions only available when the actual charity organises the event? And then also, can the business reclaim the VAT on the associated costs.
Thanks for any guidance provided. Unfortunately, I'm not familiar with VAT associated with charity events and have looked through the guidance, but wanted to clarify.