Charities Institute Ireland (CII) has welcomed the Budget announcement of a review of charities VAT, with a view to implementing a VAT Compensation scheme for charities that engage in independent fundraising.
In his Budget speech Minister for Finance, Michael Noonan, said that he has requested his officials to ’engage again…with a view to reviewing the options.’
CII spokesperson, Sheila Nordon, said that such a scheme would greatly incentivise charities to fundraise independently, assist in maintaining essential charity services and further encourage public donations.
The Minister’s announcement follows publication of a Working Group Report last year, which suggested a VAT Compensation scheme for charities similar to one already operating in Denmark.
ENDS
Note to Editors:
The Irish Charities Tax Reform Group referred to in the Minister’s speech recently merged with Fundraising Ireland to form Charities Institute Ireland - a united representative body for fundraising charities. It will hold its Inaugural Conference, to be addressed by Minister for Justice and Equality, Frances Fitzgerald, TD,on Nov 3rd next.
Full Text of Budget statement by Minister for Finance on VAT Compensation:
“Charities are exempt from VAT under the EU VAT Directive and as a result cannot recover VAT incurred on goods and services that they purchase. My Dept and the Irish Charities Tax Reform Group produced a report on the issue last year to examine how charities might be compensated in this regard. I have asked my officials to engage again with the group with a view to reviewing the options.”
