Sayer Vincent on VAT on charity wristbands
Howard Lake | 17 May 2005 | News
In their latest email newsletter consultants and auditors Sayer Vincent offer advice on whether VAT is due on charity wristbands.
Coloured wristbands are one of the most popular awareness and fundraising tools being used at present, but their VAT status is not straightforward, say Sayer Vincent.
Only if the wristbands are freely available, whether or not a donation is made for them, is no VAT due on the money given. This is even the case, say Sayer Vincent, if a particular level of donation is suggested.
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However, if a charity sells wristbands at a fixed price then this constitutes for VAT purposes a taxable supply, and wristbands will be standard-rated.
There is one ray of light on the latter situation. Sayer Vincent add that “at present it would seem that the extra-statutory concession on the purchase of fundraising goods does not apply to wristbands. ” However, it reports that the “Charities’ Tax Reform Group is in discussion with HMRC to try to get the concession extended.”
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.