Barter transactions are where no money changes hands but goods or services are swapped, which can result in the charity needing to raise a VAT-only invoice in some cases.

For example, where a charity receives radio airtime and in return gives the radio station some charity Christmas cards for it to use, the supply of radio advertising to the charity is zero rated but the supply of Christmas cards by the charity is standard rated and the charity would need to issue a VAT-only invoice charging VAT on the value of the cards.

For more information see HMRC guidance VAT: part-exchanges, barters and set-offs