天美影院

Charities will often refer to certain of their activities as 鈥渢rading鈥� activities. In this context the term 鈥渢rading鈥� is usually used to describe the organisation鈥檚 non-charitable commercial fund-raising activities. These activities are usually, if they are of any scale, carried out by the charity鈥檚 trading subsidiary. It is important not to confuse the term 鈥渢rading鈥�, when used in this way, with the term 鈥渂usiness鈥� as used for VAT purposes. For VAT purposes 鈥渂usiness鈥� can have a much wider application than 鈥渢rading鈥�, as understood by charities. A charity鈥檚 trading activities will invariably be business activities for VAT purposes. But it is important to bear in mind that, in addition, some or all of the charity鈥檚 primary or charitable activities might also be business activities for VAT purposes.

The distinction between 鈥渢rading鈥� and 鈥渂usiness鈥� is a common source of confusion for charities. A charity may consider very carefully the VAT aspects of their trading activities, but neglect to consider whether their charitable activities might also be 鈥渂usiness鈥� for VAT purposes.

When seeking advice charities will often refer to their 鈥渢rading鈥� activities. It is important when responding that you do not use the term 鈥渢rading鈥� if what you mean to refer to are the charity鈥檚 business activities.