What is the VAT rate on charity shops?
Charity shops and sales of goods Although the sale of donated or bought in goods is a business activity, the precise VAT treatment depends on both the circumstances of the sale and the nature of the goods. ( 5.5 Charity shops and sales of goods The sale of donated and bought-in goods by charities and their trading subsidiaries is a business activity. The VAT treatment of the income from these sales depends upon the circumstances and the nature of the goods. 5.5.1 How do charities treat income received from the sale or hire of donated goods? The sale, hire or export of donated goods by a charity or its trading subsidiary (where that subsidiary distributes its profits to the parent charity) is zero-rated. Zero-rating is subject to the following conditions: the goods must have been donated to the charity or trading subsidiary; and the goods must be made available to the general public, or to two or more persons who are disabled and/or receiving certain means tested benefits.
It should be ZERO, but ours here collect the tax. They shouldn’t because the stuff is given to them. When I questioned it I was told they still have “operating costs” which charge them tax. They’ve just turned into tax collecters for the government. I do know that if you have a coupon “Buy one Get one FREE” you don’t pay tax on the FREE one.
