Following representations from the BRC and retailers, the Government has today announced that it will consult on a new VAT relief which would apply to donations of products to charitable organisations for the direct support of people of need. 

At present, if a business donates goods to a charity for onward sale, VAT is exempt. However, when goods are supplied with the intention that they will be given to people in need free of charge, VAT must be paid. 

The announcement is part of the Government's Tax Administration and Maintenance Day, which sets out a series of policy proposals for consultation. 

It comes following sustained lobbying from the BRC and retailers alongside the CBI over the past 18 months. A huge thank you to everyone who was able to support our campaign. 

The consultation will be launched later this year and BRC will be submitting a response. If you're interested in getting involved in our work on this VAT relief, please contact tom.mccarthy@brc.org.uk.