How VAT affects charities (VAT Notice 701/1)

Find out what a charity is, how VAT affects charities, how to treat a charity's income for VAT and what VAT reliefs a charity can get on what it buys. Consult the original guidance for current legal and operational details.

• 1. Overview
• 1.1 What this notice is about
• 1.2 Who should read this notice
• 1.3 The law covered in this notice
• 2. Charities
• 2.1 Proof of charitable status
• 2.2 Trading subsidiaries
• 2.3 If you're still uncertain
• 3. Implications of VAT for charities
• 3.1 VAT
• 3.2 Who needs to register for VAT
• 3.3 How VAT affects charities
• 3.4 When VAT will be charged
• 3.4.1 Outside the scope
• 3.4.2 Taxable
• 3.4.3 Exempt

• v1.016/09/2026