CIC Association

Serving Community Enterprise

Canvassing for opinion - aware that donations to CIC's are liable to corporation tax but would a donation to a CIC be subject to VAT.  Opinion given to us suggests that is counted as such but I wonder what it's relationship if any to trading is, but given that donations are subject to corporation tax I suppose it makes sense.  Thoughts appreciated.

Views: 287

Replies to This Discussion

Hi Rachel. You are right that it is subject to Corp tax, however if it is a genuine donation (i.e. the person/business making the donation expects nothing in return) then it is outside the scope of VAT. Thanks. Andy

Hi Andy

Many thanks for replying.

Here is the response for our accountants

2)       Bad news on the donation for VAT – it is included in taxable turnover. Sorry. I took a second opinion on this just to be certain. We both came to the same conclusion based on the actual legislation VAT group 12 & 13 you wouldn’t be an eligible body.

Any thoughts?


I can't see how there has been a supply for vat purposes as donations are freely given without the expectation of receiving anything in return. As such I would not count them towards business/taxable turnover for vat purposes. They would be non business for vat and outside the scope of vat.

Thanks Heidi, this is kind of where I was.  Will check with accountants as to their thinking on this.  It's just this donation could push us over the VAT threshold which we don't want.




From Funding Central


© 2021   Created by John Mulkerrin.   Powered by

Badges  |  Report an Issue  |  Terms of Service