Minister for Community Development, Natural Resources and Digital Development and Fine Gael TD for Galway West and Mayo South Seán Kyne TD has welcomed the introduction of a VAT Compensation Scheme for Charities in Budget 2018.
The new Scheme has an initial allocation of €5 million which will take effect from 1st January and will be payable one year in arrears.
Commented Minister Kyne: “As Minister of State at the Department of Rural and Community Development with responsibility for the Charities Regulator and the various funding schemes for community and voluntary organisations, I am delighted with the introduction of this VAT Compensation Scheme.
“Under the Scheme charities will be entitled to a refund of a proportion of their VAT costs on inputs, including eligible purchases, based on their non-State funding. This will help charities direct even more of their funding into the important work they undertake in communities.
“A study carried out by Charities Institute Ireland found that a sample of 140 charities paid over €71 million in VAT in 2015. This shows the scale of the resources that will be freed up under the Scheme introduced by Minister Paschal Donohoe.
“I look forward to the introduction of the new Scheme which will make both public and private sources of funding for charities go further and result in clear benefits for communities right across the country.”