Capture your VAT

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VAT on charities is not just your accountant’s problem. It has a very real and significant human cost for the people with whom you work.

To convince the government, political parties, the media and the general public of the need to ‘Abolish VAT on Giving’ the ICTRG nationally and each individual charity needs to spell out this human cost in specific terms:

• How much VAT do you pay on an annual basis
• The major cost items on which you pay VAT
• What you could achieve if compensated for VAT.

An increasing number of charities are already ‘Capturing their VAT.’ These are examples of what they have found:

“Our VAT bill could pay for one, if not two extra bungalows, ensuring that 12 people with intellectual disability were properly and adequately housed.”
- Respect/Daughters of Charity

“Our overall VAT cost is c.€300,000. With this amount we could run our entire cancer information service for a year.”
- Irish Cancer Society

Ideally a record of all VAT paid should be collated. If it was €200,000 what would this have paid for? Recording the VAT paid on just ONE major expenditure can be of benefit. If you discover that you paid €50,000 VAT on a particular item, what extra activity or service would that have funded?

The time between now and the general election is vital. Emphasising the Human Cost of VAT will help to convince the political parties, the media and the general public that to Abolish VAT on Giving is the Right Thing to Do!

Charities that have already ‘Captured their VAT’ discovered that, surprisingly, the work involves considerably less time than expected.

How much time does it take you to raise €1,000, €10,000, €50,000?

Whatever level of expenditure you have, whatever amount of VAT you pay, a successful campaign to compensate charities for VAT will return essential funds to your charity. And provide a very real benefit in human terms.

To discuss details regarding Capturing your VAT contact: John Gallagher, Project Manager. Tel. 087.9369888. email jgconsult@iol.ie

The Irish Charities Tax Reform Group. ISFC, 10 Grattan Cres., Inchicore, Dublin 8. Ph (01)4531861; Fax (01)4531862; admin@charitytaxreform.com; www.charitytaxreform.com; www.vatcampaign.com