PRESS RELEASE
Monday, 10 October 2023
Budget 2024: The Wheel Welcomes Increased Cap on Charity VAT Compensation Scheme
The Wheel, Ireland’s National Association of Charities, has today (10 October 2023) welcomed the announcement that the annual cap on the Charity VAT Compensation Scheme will be increased from €5 million to €10 million.
Commenting on the announcement by Minister Michael McGrath TD in his Budget 2024 address, Ivan Cooper CEO of The Wheel said, “The increase in the annual cap will support charities to fundraise independently. This announcement is a welcome recognition of the importance of charitable fundraising in funding essential public services.”
The Government introduced the Charity VAT Compensation Scheme in 2018 to help reduce the VAT burden on charities and to partially compensate for VAT paid in the day-to-day running of these organisations.
Under Irish and EU VAT law most charities are exempt from VAT, the possible exception being charities that carry on trading activities as part of their nonprofit remit. This means that most charities and nonprofits do not charge VAT on their services and cannot recover VAT incurred on goods and services that they purchase. Non-entitlement to VAT deductibility is a general feature of VAT exemption.
ENDS
Ivan Cooper, CEO of The Wheel is available for interviews. Contact Gert Ackermann on 086 1769287 or email gert@wheel.ie.
EDITOR’S NOTE:
The Wheel will issue further reaction to Budget 2024 shortly.
About The Wheel
The Wheel is Ireland’s national association of charities. Its membership includes over 2,300 charities, community groups, and social enterprises. The Wheel is a representative voice and a supportive resource that offers advice, training, influence and advocacy for the non-profit sector. To learn more about The Wheel’s work visit www.wheel.ie
