VAT Compensation Scheme

How do you calculate the claim amount?

The claim amount is called eligible tax in legislation and is the amount which a charity may claim under the scheme. This is the amount which is eligible to be claimed based on the level of non-public funding received. 

The claim amount or eligible tax for the calendar year to which the claim relates, means an amount determined by the formula:

qualifying tax X (qualifying income/total income)

A charity which qualifies for the scheme, may therefore submit a claim for €3,916.21 for that year.

It is important to note that the minimum claim which may be submitted is €500. The total annual amount available to be paid out under the scheme is capped at €5 million per year. The amount which may be paid to any charity depends on demand from all applicants. This means that the amount paid by Revenue to any charity may be less than the claim amount.

Next: Making a claim