Reminder: Charities VAT Compensation Scheme Deadline Extended to 31 August

Posted on 21 Jul 2020

The Revenue has commenced processing claims received under the Charities VAT Compensation Scheme.  Due to COVID-19,  the closing date for receipt of claims has been extended to 31 August 2020, for this year only.  Charities are encouraged to submit their claim as soon as possible to ensure a timely turn-around time for payment. 

Revenue has asked The Wheel to remind charities that when submitting a claim, please ensure that all publicly funded income (including any refunds paid by Revenue in 2019 under the Charitable Donation or VAT Compensation Schemes) is included in Total Income but deducted from the Qualifying income figure. In addition to accurately calculating the correct VAT on inputs, identifying the correct qualifying income figure is crucial and errors made in this regard may delay the entire claims process for all charities or result in claims being reduced where errors are found.  

Charities that have already submitted a claim and may have included public funding as qualifying income in error should contact Revenue for advice on amending their claim.  Contact should be made through ROS (once registered) using the MyEnquiries category ‘ and sub-category ‘Charities/Sports’.

Tony Ward, Director of Finance at The Wheel said, “It is important for the charities sector that all claims are submitted at the earliest possible date and that Revenue can deal with concerns promptly for the smooth implementation of the Scheme and that payments can be made at the earliest possible date. Charities should ensure that all public funding and other non-qualifying income is excluded from claims when making the necessary calculations.”

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