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Charities have extra time to get to grips with new VAT rules, following concerns by the Charity Tax Group (CTG).
HMRC this week announced an extension to the transitional period during which a retrospective concession will apply for direct mail to be treated as a single composite supply of zero-rated delivered goods.
The end date is now 31 July 2015, having originally been 1 April, after the tax department ruled last year that the printing and delivery of mail packs for charities and other organisations should no longer be zero-rated for VAT purposes.
Charities have extra time to get to grips with new VAT rules, following concerns by the Charity Tax Group (CTG).
HMRC this week announced an extension to the transitional period during which a retrospective concession will apply for direct mail to be treated as a single composite supply of zero-rated delivered goods.
The end date is now 31 July 2015, having originally been 1 April, after the tax department ruled last year that the printing and delivery of mail packs for charities and other organisations should no longer be zero-rated for VAT purposes.
The Revenue plans to publish a brief on 5 June to explain changes to VAT notices 700/24 and 701/10, and will further extend further the end-date for the transitional period should be the brief not be produced in time.
The tax authority previously refused to offer an extension, in spite of complaints from the CTG about lack of official guidance.
The group’s chairperson, John Hemming, welcomed HMRC’s decision, explaining how his organisation had “made it clear that it was unacceptable for charities to be expected to implement new rules without updated guidance having been published.
We remain in discussions with HMRC about the exact scope of this concession and will continue to seek the fairest outcome for charities,” he said.
