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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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Charities VAT Compensation Scheme – €5 million to be distributed

The Minister for Finance, Paschal Donohoe, TD, announced that €5 million will be distributed to charitable organisations who made claims under the Charities VAT Compensation Scheme. The scheme 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.

Revenue received over 900 VAT claims, totalling almost €49 million in respect of 2019. Revenue is currently engaged in a risk-based claims review process for the scheme and some incorrect claims have been identified. Similar to last year, errors relate to the inclusion of public funding in the amounts included in the claim as qualifying income.

Revenue expected to be able to distribute the pro-rata refund amounts last month.

In a press release issued by the Department of Finance, the Minister thanked all those in the charities sector who have worked with Revenue to allow the scheme to function. The close co-operation is expected to allow for refinement of the administration and operation of the scheme. The Minister noted the demand for the scheme as being an indicator that the scheme “is viewed as being of real benefit to the sector”.