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.
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.
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.