Campaign Details - Abolish VAT on Giving

The Irish Charities Tax Reform Group representing over 140 of Ireland's leading domestic and overseas charities and voluntary groups including Irish Cancer Society, Rehab, Concern, Trocaire, Barnardos, Central Remedial Clinic, St. Vincent de Paul, Enable Ireland and Cheshire Homes, is calling on all political parties to make a commitment to refunding VAT to the Charities Sector. Few people realise that the greatest tax burden facing Irish charities is their VAT bill, which ICTRG calculates at 18 million Euro each year for the entire sector.

Unlike the commercial sector, charities cannot reclaim the VAT they pay on vat-able goods and services which means that for every 1 Euro they spend an additional 21 cent returns to the government as VAT. For some charities the VAT bill represents a very high proportion of all the money they generate from fund-raising. This can be a crippling experience and needs to be addressed.

ICTRG recognises the contribution made by successive Governments on tax reliefs on donations. However, we now believe that the Government must address the VAT issue.

We are asking the Minister for Finance, under Section 20 of the VAT Act, 1972, to make compensation available to charities equivalent to the amount of VAT they pay. Charities such as Barnardos, the Hospice Movement, Vincent de Paul, Simon and hundreds of others can vastly enhance and improve their services if the VAT burden is eased. Our best research and information suggests that this issue can be addressed by means of a refund mechanism.

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