Value Added Tax Rates

Your organisation may charge value added tax (VAT) toward revenue it receives. VAT is the amount that is subject to tax as a result of goods or services, such as benefits received for a donation. For example, a constituent may receive a coffee mug as thanks for a donation of $100. Because the mug is worth 50p to your organisation, the amount of 50p is subject to VAT.

Her Majesty’s Revenue & Customs (HMRC) may charge a standard rate for goods and services. Likewise, certain goods and services are exempt from VAT, while others are subject to a reduced rate. In Revenue, you can configure the amounts charged for VAT, such as the standard, reduced, and zero rates. To view the VAT rates from Revenue, click VAT tax rates under Configuration. The VAT Rates page appears.

Under VAT tax rates, you can view the VAT rates configured by your organization and the percentage amount charged for each. To update the information that appears in the grid, click Refresh.

You can add or edit the VAT rates, such as to reflect changes to the standard or reduced rate amount.