Consultation tracker
CTG: Shared services and VAT
- Published: 25/05/09
- Deadline for responses: 17/07/09
According to European legislation (Principal VAT Directive), charities which decide to come together to form a cost-sharing members’ group where one charity provides back-office services such as IT or HR support to the others should not be charged VAT on the shared services.
However, HMRC has not implemented that directive in UK VAT law.
Many charities are therefore unable to share staff, services or facilities with other charities. Charities which went down that route have to pay VAT, an illegal burden according to EU law.
Before making any move on this issue, HMRC has asked CTG to prove that there was a demand from the charity sector to use shared services. We therefore need your input and have designed a survey for you to share your thoughts on that issue.
To know more about this issue and participate in our survey please look at the attached document.
If you wish to participate in our survey then please complete and return the survey to Mathieu (mathieu.mori@centrallobby.com) by Friday 17 July.
However, HMRC has not implemented that directive in UK VAT law.
Many charities are therefore unable to share staff, services or facilities with other charities. Charities which went down that route have to pay VAT, an illegal burden according to EU law.
Before making any move on this issue, HMRC has asked CTG to prove that there was a demand from the charity sector to use shared services. We therefore need your input and have designed a survey for you to share your thoughts on that issue.
To know more about this issue and participate in our survey please look at the attached document.
If you wish to participate in our survey then please complete and return the survey to Mathieu (mathieu.mori@centrallobby.com) by Friday 17 July.
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