Forum Categories › VAT ADMINISTRATION ISSUES › VAT on grants › Reply To: VAT on grants
10 November 2018 at 21:16
#55940
vatconsultant
Member
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.