HMRC clarification on VAT treatment of digital advertising by charities

HMRC clarification on VAT treatment of digital advertising by charities

Mon 09 Nov 2020

Following extensive consultation with the Charity Tax Group, HMRC issued Revenue & Customs Brief 13/20 on VAT charity digital advertising relief.

The VAT treatment of digital advertising for charities has been the subject of an ongoing battle with HMRC over the last couple of years, but the Business Brief confirms that HMRC have finally taken a more reasonable stance.  Advertising is one of the main expenditures of charities and this issue has been causing them major concern. So, it is a significant and positive development for the charity sector.

Please get in touch with a member of the Mazars indirect tax team for a further consideration of the Charity advertising VAT issues.