Toddler Group & VAT

garyclay

Hi,

Should a toddler group that is run in the local community centre by parents have to pay VAT on toy purchases for the uexclusive use of the toddler group?

The toddler group isn't a registered charity or anything but is non profit making.

Thanks

feclmum

would be interested to know the answer to this question as i run a toddler group(non profit making) and we have never thought of claiming vat back

oldtoolie

You are required to pay VAT.

If your group is registered as a business to collect and pay VAT on services or products that the group sells you might be able to reclaim VAT. But you probably are not in that category.

see www.financehub.org.uk and search for VAT to see more about this and other charity/NP funding and finance issues.

fengirl_2

It is a common misconception that charities don't pay VAT. In fact they are as liable to VAT as the next small entity. However, you can get relief for staff advertising and fundraising literature.

JasonLVC

Just to confirm what Fengirl has stated, that you cannot avoid VAT on toy purchases.

As oldtoolie has noted, you must charge VAT for your services if you want to recover VAT on purchases. A toddler group would come under the same description as a creche or nursery and these are explicitly exempt activities - that is, you couldn;lt charge VAT on your services even if you wanted to.