VAT and donations
Q: My client, a UK Company, prints and sells t-shirts to the public. He has recently decided to sell these items advertising that the proceeds will now go to charity, should VAT still be charged on these sales?
A: Yes VAT should still be charged because your client is ultimately still selling the same items; donating the proceeds from the sale does not change this fact. The donation itself will be free of VAT but the goods being sold still carry VAT in the same way as before. If your client was a charity selling donated goods then those could be sold at the zero rate but here that is not relevant.