# VAT comments raise refund hopes

- Link: https://fundraising.co.uk/2006/12/20/vat-comments-raise-refund-hopes/
- Published: 2006-12-20T00:00:00+00:00
- Author: Howard Lake

The Irish Charity Tax Reform Group’s campaign to seek the refund of VAT paid by 
charities received a boost with the recent comments by the Irish finance minister
that he could pay such a refund. Irish charities pay 21 percent unrecoverable VAT
on a range of items such as fundraising costs, buildings and phone bills.

Softening the earlier position that VAT law could not be altered due to EU regulations,
Finance Minister Brian Cowen said in answer to a Dail question that he could compensate
charities without contravening EU regulations. It is understood that EU member Denmark
operates such a compensation scheme.

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Unlike businesses charities cannot reclaim VAT and it is estimated that the annual
cost to the sector is over ‚€20 million. St Vincent de Paul estimates that it will
pay over ‚€2.6 million in VAT in 2006. The cost of fundraising supplies such as 
print, mailing lists and advertising are subject to VAT.