In line with my Budget 2018 announcement, a VAT compensation scheme for charities will be introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, from a total capped fund of €5m.
Work on this scheme by officials of my Department and the Office of the Revenue Commissioners is ongoing. While the high level principles of the scheme were published on my Department’s website on Budget Day, the wider parameters of the operation of the scheme need to be agreed, so that guidelines for charities can be published along with the Ministerial Order underpinning the scheme.
Until such time as the wider parameters of the scheme have been fully agreed, and guidelines have been published, it is not possible to comment on the details of the final implementation.