HMRC has confirmed that VAT‑registered companies in Dorset can donate goods to registered charities without incurring VAT, provided the goods are used to support people in need or deliver charitable services. This removes a barrier that previously required businesses to pay VAT on donated goods. Businesses should keep accurate records of donated items, especially high‑value goods.
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No VAT will be due when eligible goods are donated free of charge to registered charities, provided the goods are used to support people in need or deliver charitable services.
Primary source
Read the full article at Bournemouth EchoThis summary was published on VATfaqs.com on 7 June 2026. It relates to VAT developments in United Kingdom. The original source is Bournemouth Echo.