As part of Budget 2018, a new scheme was announced that will allow charities to claim back a portion of VAT on goods and services that they purchased in the preceding year. The new scheme will come into effect on the 1st January 2018, however, it will be 2019 before the positive impacts of the scheme will come into force.
This change has been welcomed by the sector as a whole as it has been something that has been lobbied for in the last several years. A capped fund of €5 million will be made available for the scheme in 2019.
In his speech, Minister for Finance Pascal Donohue, described the scheme as a recognition of the work undertaken by charities. The scheme will enable charities to reinvest the funds back into the vital services that they provide.
Last modified: October 11, 2017