RCB/13/20 VAT charity digital advertising relief
Revenue & Customs Brief, Issue 13. 8 September 2020
1 Purpose of this brief
This brief sets out HMRC's policy in different digital advertising situations. It also explains what advertisers and their customers may need to do.
2 Who needs to read this
This brief applies to:
• any body providing advertising services to charities
• the charities receiving such services
• representatives of the charities
Zero rate VAT applies for advertising services supplied by a third party to a charity when the services are designed for the general public. The advertisements can be by any method. The zero rate is explained in detail in VAT Notice 701/58: goods or services supplied to charities.
However, advertising services are excluded from the zero rate if a member of the public has been selected by or on behalf of the charity to receive the advertising. In these circumstances 'selected' includes any method of contact, including electronic communications.
It has always been accepted that advertisements supplied by digital methods have the potential to fall