HMRC agree to zero-rate contactless giving equipment

Under HMRC rules special fund-raising buckets sold to charities and churches have always been zero-rated for VAT. Parish Buying asked HMRC earlier this year whether this concession could also apply also to contactless giving equipment. In October 2022, HMRC confirmed to us their agreement that this concession extends to contactless giving equipment too.  That means that the prices displayed for contactless giving products will be what parishes pay and VAT at 20% will no longer be added by the supplier.

The main part of the official wording is that this applies to “any form of receptacle which is manufactured specifically for the purpose of collecting donated money and is used solely for collecting money for charity” so a standard SumUp device, for instance, will not qualify by itself. This CollecTin device and GWD donation stations already have the reductions applied, and so has this Payaz giving station.  Just in time to order your device for Christmas!