HMRC has published new guidance on the distinction between grants and contracts for VAT purposes after a long period of development and consultation. 

The Charities Tax Group (CTG) VAT expert group consider the new guidance, which is undergoing final updates, to be an improvement.  Thre is now greater clarity around descriptors of indicators of the supply position and related factors to help determine whether the payment is consideration for a supply or not.

The new guidance is available here.

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