|19 Oct 2021
|Charity Sector News
Revenue have confirmed that the VAT Compensation Scheme introduced in 2018 at a capped amount of €5m will continue into 2022. However there will be, effective Jan 1 2022, the introduction of a maximum eligible claim ceiling of €1m. Cii was instrumental in making this recommendation as part of our pre-Budget submission in order to
guard against any large claims disproportionately benefiting from the Scheme. We suggested a €1m ceiling would allow continued substantial payment to charities while protecting the total funding available for the maximum benefit of all charities.
Cii also put forward the case for increasing the scheme from €5m to €20m in light of claims totalling €40m in 2019, an increase of over €2m on 2018. This has not been agreed and Cii will continue to petition for a further extension and an increase of the Scheme in Budget 2023.