# Sayer Vincent on VAT on charity wristbands

- Link: https://fundraising.co.uk/2005/05/17/sayer-vincent-vat-charity-wristbands/
- Published: 2005-05-17T23:00:00+01:00
- Author: Howard Lake

![](https://www.fundraising.co.uk/files/images/news/3289.jpg)

In their latest email newsletter consultants and auditors Sayer Vincent offer advice
on whether VAT is due on charity wristbands.
Coloured wristbands are one of the 
most popular awareness and fundraising tools being used at present, but their VAT
status is not straightforward, say Sayer Vincent.

Only if the wristbands are freely available, whether or not a donation is made for
them, is no VAT due on the money given. This is even the case, say Sayer Vincent,
if a particular level of donation is suggested.

However, if a charity sells wristbands at a fixed price then this constitutes for
VAT purposes a taxable supply, and wristbands will be standard-rated.

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There is one ray of light on the latter situation. Sayer Vincent add that “at present
it would seem that the extra-statutory concession on the purchase of fundraising
goods does not apply to wristbands. ” However, it reports that the “Charities’ Tax
Reform Group is in discussion with HMRC to try to get the concession extended.”

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