Charity Fundraising event

[B Johnson]

I am aware of the VAT exemption for charity fundraising events but can a charity registered for VAT take advantage of it?

If so, the charity would be unable to claim the input tax on the costs of running the event.

But would it be possible to structure the event whereby sponsors (who would be charged output VAT) covered the costs of staging the event (and therefore all the input tax) and then the fundraising income element of the event (i.e. ticket sales, auction proceeds, raffles) could be separately treated and take advantage of the VAT exemption.

Or would such a treatment (if permitted) lead to a partial exemption calculation and therefore some of the input tax would not be reclaimable

Many thanks

Brian

[les35]

A VAT registered charity can use the exemption for its fund-raising events, and many do so.
But the charity would be partially exempt. Input tax related to the events is therefore non-deductible. Plus you would have to calculate the proportion of residual input tax which is not deductible.
Hopefully the income generated by the event will far out weigh the loss of input tax.