<!DOCTYPE html>
<html><head>
<meta charset="UTF-8">
</head><body><p>An follow-up to what I just wrote where I said "charities cannot reclaim VAT... unless they register for VAT (which again a charity can do if it engages in some business, such as providing paid-for training)." :</p><p>That was perhaps not a good choice for an example because the provision of education and training not-for-profit or government-funded are VAT exempt, so they would be not be suitable business activities to use as a basis for VAT registration.</p><p>Hiring out the studio or providing other commercial services are relevant business activities, and the more the business carried out depends on use of the goods and services on which VAT is being reclaimed, the better the grounds for voluntary registration. </p><p>Alex</p><blockquote type="cite">On 05 July 2016 at 21:07 Two Lochs Radio <tlr@gairloch.co.uk> wrote:<br><br><p></p>...<p>What you say about charities and VAT is exactly what I said - contrary to a popular misconception, charities cannot reclaim VAT except for some very limited things unless they register for VAT (which again a charity can do if it engages in some business, such as providing paid-for training).</p><p>A key point to remember is that whether or not an organization is constituted 'not-for-profit' or as a charity, it may still in VAT terms engage in business - as I mentioned earlier, VAT legislation defines business as providing goods and service for payment or other consideration, it does not have to mean to be in business for profit. In VAT law business includes carrying on any trade, profession or vocation. </p></blockquote></body></html>