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Official guidance
VAT Charities

VCHAR3000 · Business and non-business: Charitable activities

  • VCHAR3050 · Introduction
  • VCHAR3100 · Business and non-business activities of charities
  • VCHAR3150 · Treatment of specific activities
  • VCHAR3200 · Implications of being in business for a charity
  • VCHAR3250 · Identification of supplies made rather than sources of income
  • VCHAR3300 · Consideration or donation?
  • VCHAR3350 · What are the advantages to a charity in treating its activities as business?
  • VCHAR3400 · When is a donation not a donation?
  • VCHAR3450 · What happens if a charge is made but the customer doesn’t pay it?
  • VCHAR3500 · Treatment of welfare services supplied below cost
  • VCHAR3700 · Business and non-business: Bequeathed property
  • VCHAR3800 · Services contracted out by local authorities and health authorities
  • VCHAR3900 · Share dealing by charities
  1. Business and non-business: Charitable activities: contents
  2. Business and non-business: Charitable activities: Services contracted out by local authorities and health authorities

VCHAR3800 | Business and non-business: Charitable activities: Services contracted out by local authorities and health authorities

From HM Revenue & Customs · VAT Charities

Increasingly services that have historically been supplied by local or health authorities are being offered for tender to external organisations. Many of the activities concerned are areas in which charities have relevant expertise and consequently they may be invited to bid for local or health authority contracts. Where charities obtain such contracts, whether or not in competition with commercial providers, then the resulting supplies will normally be a business activity. The supplies may however be exempt eg residential care or other welfare services. Please also see VCHAR10000.

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