VAT Compensation Scheme

The scheme facilitates charities to claim the VAT on input costs to the extent these relate to the charity’s privately raised income. The process of establishing eligibility and calculating and submitting a claim is outlined below through links to the Revenue Commissioners’ website and guidance notes:

VAT Scheme Overview – Revenue Commissioners

Guidance notes – Revenue Commissioners

The first year of eligibility was the calendar year 2018 and the claims process, facilitated through the Revenue Online Service (ROS) was open until 30 June 2019 for all 2018 claims. Revenue confirmed that claims amounting to almost €40m were made under the scheme and payouts were issued in late October 2019. With the cap placed at €5M each charity received approximately 13% of the value of their claim by way of VAT refund.

Charities Institute Ireland campaigned for this program and we are delighted with the response from the sector. Cii will continue to work with our members, Revenue and the Department of Finance on tax policy which is fair and equitable for all stakeholders.

The €5M per annum cap will be reviewed after 3 years of operation and there is also a facility at the end of Year 1 to monitor and review any unforeseen operational issues that may arise in the roll-out of the scheme.

If you have any queries Revenue asked to contact them directly on the following number:

Charities and Sports Exemptions Unit:  01 738 3680.

Resources:

VAT Scheme Overview
Guidance notes
Declaration Template