½Û×ÓÊÓƵ

Supply and consideration ― donations and sponsorship

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Supply and consideration ― donations and sponsorship

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note looks at donations and sponsorship for VAT purposes. In particular, it considers when a payment will be consideration for a supply and therefore potentially within the scope of VAT.

For an overview of supply and consideration generally, see the Supply and consideration ― overview guidance note.

For detailed commentary on the legislation and case law, see De Voil Indirect Tax Service V3.104.

Is a donation consideration for a supply?

If a monetary donation is freely given and the donor does not expect to receive anything in exchange, it will not be viewed as consideration for any supply. The payment is outside the scope of VAT and therefore no VAT needs to be accounted for by the person receiving the donation.

HMRC has suggested the following questions will be relevant when seeking to establish whether a donation is unconditional / freely given:

QuestionSignificance
Does the donor receive anything in return for the payment?If the donor receives something in return this suggests the donation may in fact be consideration

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more Read more

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Self assessment ― estimates and provisional figures

Self assessment ― estimates and provisional figuresIf the taxpayer does not have sufficient information to enable them to complete the tax return in the time allowed, they should include either a best estimate or a provisional figure. The taxpayer should not either leave a box blank or enter

14 Jul 2020 13:37 | Produced by Tolley Read more Read more