[Question] Charity Donations - zero rated or exempt?

[michellepace]

Hello there.

I am putting a donation to our charity through as a supplier invoice (I get an invoice from the charity). Is a charitable donation seen as zero rated or excempt?

I read the below from googly but I am still confused as to which it is.

What is the difference between zero rated and exempt?

The main difference between zero rate and exempt supplies is
that the suppliers of zero-rated goods and/or services can still reclaim all their input VAT,
but the suppliers of exempt goods are either not registered for VAT or if they are,
they cannot reclaim their input VAT

[michellepace]

Sorry I know this is quote a basic accounting question which I should know the answer to... but I don't. Can anyone please tell me is a donation to charity ZERO rated or EXCEMPT from VAT?

[Christel]

Hi there, Don't put any tax type down. This entry will not appear on your VAT return. So just no TAX at all, like you would do with any other expense that has nothing to do with VAT.

[dellatjie]

But just for interest sake - if they are a registered PBO it is zero rated.


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[michellepace]

But just for interest sake - if they are a registered PBO it is zero rated.

Thanks Dellatjie, thats the answer I was looking for.