Liability ― fundraising events

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note explores the liability of income from fundraising events.

For an overview of VAT liability more broadly, see the VAT liability ― overview guidance note.

For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V4.171.

Liability of fundraising ― the basics

Income derived from certain fundraising events can be treated as exempt from VAT. Exemption extends to all income connected with the qualifying event. This includes admission charges but also other connected supplies like sponsorship or goods sold or auctioned at the event.

To qualify for exemption, the event must be organised by certain kinds of person. Those affected are broadly charities and their trading subsidiaries as well as certain other non-profit organisations. In addition to being organised by the right type of person, further criteria must also be met. Notably, the event must be organised for charitable purposes, its primary purpose must be the raising of money and it must be promoted as such (albeit there has been some debate over the validity

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