Content
After U, Gordon?
Ups And Downs
Gift Horse
What A Relief!
Second Thoughts?
Last One Out...
Penalty Shoot-Out
Ain't Necessarily So
Going, Going, Gone
Papers In Order?
Death And Taxes
Passing The Buck
Hire Higher
Back Taxes, Taxes Back
Options Open
Extortion?
Sick Note
Cats And Dogs
Old-Fashioned Money
I Thee Endow?
Mother's Rights
Countdown
Nowhere To Hide
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If a charity sells goods that have been donated for sale, it enjoys "zero-rating" for VAT - it can recover VAT on its costs but it doesn't have to charge VAT on its sales. A recent tax case featured a charity which took in stray cats and dogs from the public and the local authority dog catcher and, if the proper owner couldn't be traced, sold them. HMRC said the animals couldn't be "donated" to the charity because someone finding a stray cat or dog didn't own it. You can't give away what you don't own. An ordinary pet shop has to charge VAT on animals, and HMRC reckoned the charity would have to charge it as well. The Appeal Tribunal looked back at some of the dustier laws of England - dating from 1722 - and decided that, in fact, you do own an animal that you find wandering about. Perhaps not if you find it in a farmer's field, or if it has a name-tag on it, but it's much more "yours" than for example a bicycle that you happen to find unlocked leaning on a lamp-post. So the animals were truly donated and the charity enjoyed the favourable VAT treatment. |
© Bayar Hughes & Co., 2010.