Offaly charities eligible for VAT relief from January

Fianna Fáil TD for Offaly Barry Cowen has said changes to the VAT compensation scheme will see local charities keep more of their hard-earned income.

Deputy Cowen was commenting after it was confirmed that €5m will be available initially under the VAT compensation scheme for 2019. “My party has been calling for the establishment of a VAT compensation scheme for charities for quite some time and was to the fore in securing the inclusion of the scheme in the Budget over a year ago," Cowen said.

"It is now really important that qualifying charities across Offaly begin to make preparations to avail of this very important scheme. We know how frustrating it is for charities that the money they raise through fundraising is subject to VAT and ends up in the state coffers when they spend money on improving their facilities," he added.

"Under the scheme, charities will receive a refund of their VAT costs based on the level of non-public funding they receive. The scheme will see the compensation paid one year in arrears, so the VAT costs that charities have incurred in 2018 are applicable."

"While the €5m fund available for VAT refunds is modest, it represents an important start and Fianna Fáil will continue to press for the expansion of this scheme in the years ahead", concluded Deputy Cowen.