Charities’ Vat refunds to be capped at €1m

Representative bodies welcome the move, designed to give smaller organisations a fairer share of the benefits

Paschal Donohoe signed a ministerial order last month to cap the maximum payment at €1 million a charity per year, so that larger charities could not take most of the benefits. Picture:

Paschal Donohoe has capped the maximum Vat refunds to charities at €1 million, in a move designed to stop larger organisations taking most of the benefits.

The Minister for Finance introduced the first ever Vat compensation scheme in 2018 for charities so they could recover some of the costs of buying goods and services, based on their level of non-public funding.

The scheme is capped at €5 million annually, which means that funds are distributed ...