The appellant business a furniture store which sold donated goods to ‘persons in need’ appealed against a notice from HMRC refusing zero rating. The appellant believed it should be regarded as a charity as its ‘aims were charitable’ likewise to companies such as the Big Lottery Fund Cheshire Furniture Reuse as well as others.
While it was not recognised as a charity by the Charity Commission the appellant referred to VAT Public Notice 701/1 (Charities May 2004) – which includes the statement ‘In the case of a charity not registered with the Charity Commission recognition of charitable status by the Inland Revenue is sufficient proof' – saying that based on this notice it was reasonable for the company to conclude that it was entitled to treat sales of donated furniture as zero rated for VAT purposes.
HMRC argued that that they had no...
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