Value Added Tax

HC Deb 02 July 1981 vol 7 cc480-1W

28. Mr. Michael Morris

asked the Chancellor of the Exchequer if he is prepared to carry out a review of the impact of value added tax on charities.

Mr. Lawson

No. Comparatively few charities engage in commercial activities to the extent which requires them to register and account for tax and keep records of the incidence of VAT on their purchases. A review of the kind suggested would be onerous and unlikely to lead to any useful conclusions.

Mr. McQuarrie

asked the Chancellor of the Exchequer if he will make arrangements for all small businesses, farmers, fishermen and similar type businesses who do not require to register for value added tax to be reimbursed the value added tax on petrol and diesel on production of receipts to the appropriate Government Department which presently repays these firms for subsidies and other forms of approved repayments.

Mr. Peter Rees

Businesses whose taxable turnover is below the VAT registration threshold may register voluntarily in order to obtain repayment of VAT incurred on purchases. Industrial action by Customs and Excise staff at Southend is presently delaying such repayments, but as soon as normal working is restored, Customs and Excise will do its utmost to expidite them. In the meantime, considerations of verification and control make it impracticable to make VAT repayments through any other Government Department.