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Posted Wed, 30 Aug 2023 11:03:18 GMT by
Hi, Company is based in Netherlands and is selling digital products to UK (Have UK VAT registration). Company signed an agreement with UK charity organization for one year. Company will collect money donations via their UK website from their customers (also from their employees and business partners). Company plans to double the collected amount and give everything to charity. Based on agreement with a UK charity organization company has to pay to charity: *License fee *Agreed minimum amount *Funds, that exceed the agreed amount of support Could you please advice if any VAT/other tax obligations appears for the company? Maybe You could guide us where to search for this information? Many thanks in advance!
Posted Tue, 05 Sep 2023 10:20:29 GMT by HMRC Admin 17 Response



Hi,
 
Could you clarify what supplies you are making to the UK charity as to establish whether there are any VAT obligations  .

thank you.
Posted Wed, 06 Sep 2023 05:55:51 GMT by
Hello, Thank you for the respond. Company will only transfer the collected money for the charity, nothing more. Company might even double the amount from their own funds.
Posted Fri, 29 Sep 2023 13:21:51 GMT by
Hello, Kind reminder that no response was received. Thank You.
Posted Thu, 05 Oct 2023 14:52:11 GMT by HMRC Admin 25
Hi Questions,
If you are making taxable supplies in the UK then UK VAT would need to be accounted for in the normal way.
If you receive donations and these donations are freely given to you then these would generally be outside the scope of VAT.
Please see guidance below:
VATSC06110 - Consideration: Payments that are not consideration: Donations
If you are a limited company then I would contact Corporation Tax to see if there any tax implications there.
Please see below:
Corporation Tax: general enquiries
Thank you. 

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