Reply To: VAT on grants

Forum Categories VAT ADMINISTRATION ISSUES VAT on grants Reply To: VAT on grants


Donation and grant income is not consideration for a supply and is a non-business activity that falls outside the scope of VAT. This is because this income is freely given with no strings attached and is treated by the charity as a gift.

However a grant or donation that have conditions attached to them which is a in return for the payments are taken as consideration and VAT on them.

If the conditions attached do not necessarily make it consideration for a supply because nothing specific is being provided to the funder, then they still are non-business.