 VAT reclaim for animal rescue charities
HMRC have published their response to the Gablesfarm tribunal case about the VAT treatment of rescued animals, which we reported on this website in January. HMRC say that they accept the decision and will not appeal it. The tribunal decided that the sale by animal charities of rescued cats and dogs was not subject to VAT.
The basis of the tribunal’s decision was that charities are ordinarily able to sell goods donated to them free of VAT. They thought that, as a matter of English common law, the finders of abandoned animals became their owners because the animals’ original owners had deliberately abandoned them. These finders therefore donated the animals to the charity when they handed them over. The charity was then able to sell them VAT free as donated goods.
By accepting this decision, HMRC are reversing a long held policy. Many animal charities may have paid VAT on the sale of rescued animals and will now be entitled to a refund.
Please click here to contact us for more advice.
Keep up-to-date with our VAT news by registering for our email alert. Click here to register.
|