Claims made under the Charities VAT Compensation Scheme

Aug 19, 2019

Last week Revenue issued a press release providing information on claims made under the Charities VAT Compensation Scheme. It outlines that over 1,100 claims were made totalling almost €40 million. However, the funds available for the scheme are capped at €5 million per year so refunds will be made on a pro-rata basis to claimants.

The deadline for submission of 2018 claims was 30 June 2019 and Revenue expects to issue refunds to qualifying claimants, on a pro-rata basis, in October and November.

The scheme, which was announced as part of Budget 2018, aims to reduce the VAT burden on charities and to partially compensate them for VAT paid in the day to day running of their activities. The scheme started in 2018 and applies to VAT paid on qualifying expenditure on or after 1 January 2018. Read Revenue’s press release.