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This brief explains:

• the VAT treatment update for supplies by charities and qualifying bodies related to fundraising events, following an Upper Tribunal decision in January 2025
• charities and qualifying bodies planning to raise money through fundraising events need to read this
• Group 12, Schedule 9, VAT Act 1994 allows exemption for supplies made during fundraising events, but not all events qualify
• events must be organised primarily to raise money for the charity or qualifying body
• semi-regular or continuous activities like operating a shop or bar do not qualify as events
• an Upper Tribunal decision clarified which events qualify for exemption
• an Upper Tribunal found that an event can have more than one primary purpose, including fundraising
• the event must be promoted as a fundraising event, but not necessarily as the primary purpose
• HMRC鈥檚 policy remains that the primary purpose of the event must be fundraising and it must be advertised as a fundraising event
• charities must provide evidence if an event has more than one primary purpose
• events not organised to raise funds but which incidentally make a profit do not qualify for exemption
• fundraising events should be out of the ordinary, not business as usual
• the limit of 15 events of the same kind in the same location per fiscal year remains unchanged
• the anti-competition clause prevents distortion of competition with other suppliers of similar events and remains unchanged

For more information, read the guidance on VAT liability of income received from fundraising events.