My client is a successful restaurateur with family links to Ukraine. She is planning a gala dinner with all proceeds going to the Red Cross and has seen the publicity concerning VAT proceeds of the Concert for Ukraine being waived by HMRC. Will this apply to her event too?

The VAT issues arising from this type of situation bring to mind the old adage, ‘No good deed goes unpunished’.

It is important to make the distinction between a supply which is exempt from VAT and one which is still taxable, but where the government of the day decides to donate the VAT receipts to charity.