![\"\"](\"https:\/\/vwg.nl\/wp-content\/uploads\/20190228_ANBI_BTW-plichtig.jpg\")
<\/p>\n<\/p>\n
The fact that the funds raised through these activities are used for charitable purposes does not mean that there is no VAT liability.<\/p>\n
At the Zeeland-West Brabant District Court<\/a> The case concerns an association which has set up a foundation. The foundation runs a shop selling second-hand goods.<\/p>\n Both the foundation and the association focus on combating poverty. As a result, they have been designated by the Tax and Customs Administration as an ANBI (a public-benefit organisation). This means, amongst other things, that donations to the foundation and the association are deductible for income tax purposes and are not subject to gift tax.<\/p>\n However, for VAT purposes, it is irrelevant whether the ANBI regime applies.<\/p>\n The court has ruled that the foundation must pay VAT on the turnover generated by the shop. This is not affected by the fact that all proceeds from the shop\u2019s operations are used for a charitable cause: the fight against poverty.<\/p>\n After all, running the shop is an economic activity. Although the prices charged in the shop are low, they amount to more than a token payment. And the payments are directly linked to the supply of the goods. After all, the buyers are willing to pay in order to have the goods at their disposal. They are not paying out of generosity. The direct link between the supply of the goods and the payment received is also evident from the foundation\u2019s business plan. It states that the goods are sold to generate revenue. In addition, the foundation seeks publicity and advertises on its website.<\/p>\n Nor can the foundation apply the so-called margin scheme. Although it does trade in second-hand goods, because the purchase price is zero, VAT must be paid on the full turnover.<\/p>\n It is common for foundations and associations to sell goods and services in order to raise funds to finance their activities. This fundraising generally takes place in the course of economic activity and may therefore be subject to VAT. There is a fundraising exemption, but this applies exclusively to specifically designated core activities. You can read more about this in our note Tax liability of foundation and association<\/a>.<\/p>\n In addition, there is a ruling allowing for a reduction in the amount on which VAT is payable. This applies to situations where the price of a good or service includes a charitable element. You must seek prior approval for this from the Tax and Customs Administration.<\/p>","protected":false},"excerpt":{"rendered":" De omstandigheid dat de met activiteiten vergaarde gelden worden gebruikt voor het goede doel, betekent niet dat geen sprake is van BTW-plicht. ANBI Bij de Rechtbank Zeeland-West-Brabant is de zaak aan de orde van een vereniging, die een stichting opricht. De stichting exploiteert een winkel in tweedehands goederen. Zowel de stichting als de vereniging richten […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-756","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=756"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/756\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}VAT liability<\/h4>\n
Fundraising<\/h4>\n