Most people within the charity sector are aware of the general shift in government funding from grants to the award of contracts.  Many, however, remain unaware of the implications of such change. Whether a legal agreement is a grant or a contract, and the implications that may have for VAT purposes, remains confusing. 

In this article Andrew Studd, Partner in the Charity & Social Business Team, highlights some of the issues one needs to think about in trying to identify the VAT implications of a funding agreement.

Grants vs contracts - April 2013.pdf