Several actors, among others the European Charities Committee on VAT (ECCVAT), the European Foundation Centre (EFC), the Donors and Foundations networks in Europe (DAFNE) have decided in Autumn 2009 to jointly review if and how the situation of VAT and public benefit organisations could be improved.

Public benefit foundations are currently often treated as the final VAT consumer and they thereby loose significant amounts of money, which could otherwise be spent for their public benefit purposes. The European Commission will soon examine the taxation of public bodies and the future exemptions, a study is currently being undertaken by Copenhagen Economics on the matter. 

The strategic meeting of third sector representatives is to take place on January 29th in London to review how to best build and document the case and if a common position is feasible. Solutions could be considered at European and at national level. Further analysis is needed as the dynamics are different in each Member State.

More information about VAT and public benefit foundations can be found on the EFC website.