Charity advertising & VAT

HMRC have announced a policy revision with regard to pay-per-click advertising, supplied on third party websites. In an unaccustomed burst of keeping up with the times (well, almost), HMRC accept that this is advertising and that it can be zero rated. Clearly, as the law hasn’t changed, charities are advised to go back to the suppliers of the advertising and seek a refund for VAT charged over the past four years.

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