asked the Minister for Finance if he will clarify the position in relation to the collection of VAT at antique fairs which are organised for charitable purposes; if antique stall-holders at a charitable antique fair must charge VAT; if so, the rate; if an auctioneer providing his services on a charitable basis must charge VAT; if so, the rate; and if a charitable organisation can claim a rebate or exemption in respect of VAT and, if so, the procedures in the matter.
Written Answers. - VAT Charges on Charities.
342.
Persons engaging in the business of selling antiques, whose turnover exceeds the appropriate limit for VAT registration, are liable to tax on their sales made at antique fairs organised for charitable purposes. The registration limit which applies in connection with sales of antiques is £1,500 in a taxable period of two months. In order to cover their tax liability such persons would have to include an element for VAT in their prices. Antiques are regarded as secondhand goods to which the 10 per cent rate of VAT applies.
An auctioneer who provides his services free of charge has no VAT liability; otherwise he is liable at 10 per cent on his fee.
A charitable organisation engaging in the operation only of an occasional minor antique fair would not be regarded as carrying on business. It would have no VAT liability on its receipts but would not be able to obtain relief for tax suffered in connection with the operation of the fair. This is in line with the treatment of non-business charitable activities generally.