VAT exemption

I have heard (from a similar charity set up to ours) that a registered charity which raises all it's income based on a 1 day event can be exepmt from VAT registration. Is this correct? I can not find anything online about it? If it is correct, can we retrospectively cancel our registration? Thanks, Cathy Milligan

https://www.gov.uk/government/publications/charity-fundraising-events-exemptions/fundraising-events-exemption-for-charities-and-other-qualifying-bodies Section 3 deals with event fundraising, but don't jump to that, read all of the document as it all has to be read in context. I think it is risky to base your charities financial compliance on hearsay/what another charity is doing. There is the risk the other charity are doing it wrong or the way they fundraise or are structured* is different to the way you fundraise/your own structure. *Structured as in the other charity might have a trading subsidiary, the board of Trustees may not be renumerated, etc. Are you comparing apples with pears. If you were never making taxable sales (or made what you thought were taxable sales but in fact they were not), then HMRC can cancel your VAT registration, you'll need to repay any input tax reclaimed and any VAT charged to customers will likely be left as it is, it'll be too complex to refund them potentially. Link here about when a VAT registration was made in error https://www.gov.uk/hmrc-internal-manuals/vat-registration-manual/vatreg31100 The first hurdle will be ensuring your events are indeed exempt - the above link will explain the rules - and then once established that is the case, writing to HMRC to set out the situation and explaining the error of VAT registration and then HMRC will reply with their view and what to do if they accept your deregistration request or else why HMRC cannot accept your deregistration. If you've an Accountant who prepares your year-end and Charities Commission filings, then might be worth asking them for assistance.

Hi.
Please see the guidance below which explains about the requirements to register for VAT:
Working out whether you need to register
Thank you.