§ Mr. Steenasked the Chancellor of the Exchequer if he will remove VAT from purchases by voluntary charitable hostels.
§ Dr. GilbertCharitable hostels registered for VAT are already able to reclaim tax paid on purchases related to their taxable supplies.
Where charitable hostels charge substantially less than cost for supplies of board and lodging to distressed persons they may not recover tax paid on their purchases, but neither are they required to account for tax on their supplies.