Carbon Emissions: VAT
Commons · Question 70024 · Tabled 22 Jul 2025 · Treasury · Official record
Answered 4 Sep 2025
Question
Asked by Edward Morello
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of charging VAT on carbon offset donations on levels of public engagement with climate action.
Answer
Answered by Dan Tomlinson, 4 Sep 2025
Payments that are freely given without the expectation of receiving something in return are not in the scope of VAT. This is a fundamental principle of how VAT operates. Donations made to carbon projects are outside the scope of VAT. This means that VAT s...