VAT compensation scheme for charities to be introduced

A new VAT compensation scheme for charities is set to be introduced in the New Year.

VAT compensation scheme for charities to be introduced

A new VAT compensation scheme for charities is set to be introduced in the New Year.

Under the plan - which will be up and running from January - charities will be able to claim relief on an amount of the VAT paid to the exchequer, starting with sums from 2018.

€5 million will be made available for refunds, a move that has been welcomed by Fianna Fáil.

The party's finance spokesperson, Michael McGrath, said help for the sector - however modest - has been a long time coming.

"It is a really important step forward and a breakthrough that has been long sought by the charitable sector because the reality is that a lot of the money that they raise through fundraising, by volunteers is ultimately paid to the Exchequer by way of VAT when they expand their services and invest in facilities," said Mr McGrath.

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