VAT Club: Not for profit
VAT exemption: five opportunities in not for profit
Generally speaking, VAT is an additional cost for the majority of not for profit entities which must be factored into any planned spend. When capital expenditure is involved, devoting up to an additional 20% of charitable funds to a project can be particularly vexing. Consequently, it is advantageous if the imposition of VAT can be avoided on the upfront cost of a capital cost of a project, rather than having to rely on the complexities of a partial exemption or a business/non-business method, the capital goods scheme or tax planning in order to seek to mitigate the VAT cost.