Commentary

701/58/19 Goods or services supplied to charities

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

701/58/19 Goods or services supplied to charities

Part V8 HMRC Notices | Commentary

701/58/19
Goods or services supplied to charities

January 2019

1 Overview

1.1 Who should read this notice

Charities and businesses which make supplies to charities. In particular this notice should be read by—

  1.  

    —     all charities;

  2.  

    —     suppliers of advertising services to charities;

  3.  

    —     suppliers of printed matter to charities;

  4.  

    —     suppliers of charity collection boxes;

  5.  

    —     suppliers of stickers and emblems used as charity lapel badges.

Main narrative treatment—V4.266, V6.184–V6.185.

1.2 What this notice is about

This notice explains which advertising services and closely related goods are zero-rated when supplied to a charity. It also explains which goods for the collection of donations can be zero-rated by concession.

Main narrative treatment—V4.266.

1.3 History of the relief

Following the application of VAT to newspaper advertising in 1984, charities successfully campaigned for the retention of a zero rate for certain advertisements. Over the years the scope of the relief widened to include broadcasting of advertisements as well as printed media advertisements. Concessionary zero-rating of certain types of printed matter has also been allowed, and the supplies covered have changed over time.

Following the Review of Charity Taxation in 1997–1999 the scope of the zero rate for advertising was widened. The scope of the concessionary zero rate was also extended and formalised into an Extra Statutory Concession (ESC).

Main narrative treatment—V4.266.

1.4 Law

This notice gives the position with effect from 1 April 2000.

The full text of the relevant law is reproduced in section 11. The ESC is reproduced at section 12.

Main narrative treatment—V4.266.

2 Scope of the advertising relief

2.1 Who qualifies for zero-rating

Any charity can benefit

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