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Readers' forum: VAT on charities

08 March 2016
Issue: 4541 / Categories: Forum & Feedback , VAT

Does a charity need to register for VAT on supply of medical equipment?

Our client is a charity which supplies medical equipment to schools and other organisations. It also supplies training to those same organisations on how to use the equipment. We think that the income from the training element is exempt from VAT in accordance with VAT Notice 701/30: Education and vocational training. This is because the training seems to fit the remit of education in that notice and the charity that of an eligible body. The medical equipment is supplied to the schools and organisations at cost (no profit element being charged) and these seem to be business supplies for VAT purposes.

The supply of medical equipment by our client now exceeds the VAT registration limit. Must the charity register for VAT or is there something that we have missed?

Query 18 741– Ticked Off.


Reply by Gardener

HMRC’s Notice 701/30 states: ‘Education means a course class or lesson of instruction...

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