Charities can claim VAT relief from January-Kildare TD

Fianna Fáil’s Deputy Finance Spokesperson and Local TD Frank O’Rourke has welcomed the confirmation from the Department of Finance that a new VAT compensation scheme will be up and running from January 2019.

Deputy O'Rourke said:“I urge all qualifying charities to make preparations to avail of the VAT Compensation scheme which comes into effect from next month. We have been calling for the establishment of a VAT compensation scheme for charities for the last couple of years and we were to the fore in securing the inclusion of the scheme in the Budget over a year ago. I welcome the fact the preparations for the scheme are now at an advanced stage and that an initial overall fund of €5m will be available to be refunded to the charitable sector in 2019 in respect of their 2018 expenditure.”

He said:“Much of the money raised by charities through fundraising ends up being paid to the State by way of VAT when the charity spends the money on improving their facilities and services. The scheme will see the compensation paid one year in arrears. This means that VAT costs that charities have incurred in 2018 are applicable in the scheme coming into effect. I understand that the Revenue Commissioners will issue guidelines about the operation of the scheme once the Ministerial Order giving effect to the scheme is signed into law later this month."

“I want to commend the charitable sector for the work they have put into getting this scheme up and running. Every qualifying charity should familiarise themselves with the scheme and explore how they may be able to benefit from it," concluded Deputy O’Rourke.