Charities ― advertising

By Tolley
VAT_tax_img

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Charities ― advertising
  • Zero-rating of advertising services
  • Goods used by charities for collecting donations
  • Claiming relief on zero-rated advertising and other supplies

This guidance note covers the VAT treatment of advertising, printing and items related to donations that are supplied to charities. This note should be read in conjunction with the Zero-rated ― supplies of printed matter and Charities - overview guidance notes.

De Voil Indirect Tax Service V6.184–V6.185, V4.266 (all subscription sensitive); VATA 1994, Sch 8, Group 15; Notice 701/58 ; VCHAR1000
Zero-rating of advertising services

The VAT legislation provides for certain advertising services provided to a charity to be zero-rated.

VATA 1994, Sch 8, Group 15, Items 8–8C

For the meaning of charity in the context of this zero-rating, see the Charities ― overview. It should be emphasised that for the purposes of this zero-rating, supplies to a charity’s trading subsidiary do not qualify.

Notice 701/58 , para 2.1
Types of charity advertising supplies which qualify for relief

The VAT legislation says that the following types of supplies qualify for relief:

  • the supply to a charity of a right to promulgate an advertisement by means of a medium of communication with the public (VATA 1994, Sch 8, Group 15, Item 8)
  • a supply to a charity that consists in the promulgation of an advertisement by means of such a medium (VATA 1994, Sch 8, Group 15, Item 8A)
  • the supply to a charity of services of design or production of an advertisement that is, or was intended to be, promulgated by means of such a medium (VATA 1994, Sch 8, Group 15, Item 8B)
  • the supply to a charity of goods closely related to a supply within (the bullet above) (VATA 1994, Sch 8, Group 15, Item 8C)

HMRC suggests that the relief covers all types of advertising on any subject including staff

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