Question to the HM Treasury:

To ask Her Majesty’s Government whether VAT will be charged on money paid by HM Government to the Royal Parks charity; whether VAT is payable in full by the Royal Parks to HM Revenue and Customs in respect of services it provides to the HM Government; whether VAT will be chargeable and payable to HM Revenue and Customs on goods and services, such as catering, provided by the Royal Parks charity to others, including the general public, on the same terms as apply to other providers of goods and services; and whether other arrangements for VAT, not covered by those indicated above, will apply to the Royal Parks charity, for example on the purchase of services supplied by others, including in respect of maintenance and repairs of assets.

Whilst it is not possible to comment on the affairs of individual taxpayers, the general rule is that VAT is due to HM Revenue and Customs (HMRC) on taxable supplies made by VAT registered persons, including charities. This is the case whether the supplies are made to HM Government or to others. In turn suppliers can normally recover, from HMRC, the VAT they pay on their costs.