Charities pay €36m in VAT every year

THE Government is taking about €36 million annually in VAT from Irish charities, curbing vital services to help poor and sick people, a campaign group claimed yesterday.

A 2001 report estimated the VAT bill faced by charities to be in the region of €18m, but this was considered to be about half of the equivalent cost today.

Unlike businesses, charities are prevented by EU law from claiming back VAT, but governments are allowed to reimburse them by way of grants.