Carbon Emissions: VAT
The question
To ask the Chancellor of the Exchequer, if she will make it her policy to exempt donations to verified carbon offsetting projects from VAT.
Answered by Dan Tomlinson
Payments that are made voluntarily, without expectation of receiving goods or services in return, fall outside the scope of VAT. This is a core principle of the VAT system. As such, donations to verified carbon offsetting projects are not subject to VAT, and VAT should not be charged on these donations.
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