The Value Added Tax (Fund-Raising Events and Charities) Order 1989

Explanatory Note

(This note is not part of the Order)

This Order extends the zero-rating provisions of Group 16 (charities, etc) of Schedule 5 to the Value Added Tax Act 1983 and adds a new Group 12 to the exemption Schedule of the same Act.

The zero-rating reliefs available under Group 16 have been extended to cover:—

  • advertising published for a charity for educational or fund-raising purposes in a programme, annual, leaflet, brochure, pamphlet, poster or similar publication;

  • sterilising equipment supplied to certain non-profit-making bodies for use in medical research, diagnosis or treatment.

The new Group 12 exempts supplies made in connection with one-off fund-raising events by charities and certain other non-profit-making bodies such as political parties and trades unions.