Royal British Legion: VAT
The question
To ask the Chancellor of the Exchequer, if she will hold discussions with the Royal British Legion on the potential impact of changes to VAT rules on price lists for poppy appeal items.
Answered by Dan Tomlinson
HMT Ministers regularly meet a wide array of stakeholders as part of the tax policymaking process.
The Government recognises the importance of Remembrance events and the role they play in honouring those who have served.
Where a charity chooses to offer its goods or services for free and invite voluntary donations, no VAT is charged. Charities also rightly enjoy generous tax reliefs, worth over £6 billion in 2024, including Gift Aid, exemptions from corporation tax and a number of VAT reliefs to support fund-raising activities. However, where charities sell goods and services, for example charging a set price, and the charity is VAT registered, it must charge VAT unless a VAT relief is available.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →