HMRC has formally published new guidance which sets out (and
relaxes) its views on when digital advertising supplied to charities will
qualify for zero-rating. Revenue
& Customs Brief 12/2020 sets out HMRC’s views on the VAT status of
a number of different types of digital advertising supplied to charities. This
is the first time HMRC has formally published this level of detail on the
subject.
There is an important difference in the position set out by
HMRC in this brief as compared to the position set out in correspondence with
the Charity
Tax Group in July 2020, namely HMRC now accepts that ‘location targeting’
(where individuals opt in to provide location data, and this information is
collected and combined into large datasets to target audiences who have visited
particular areas) can in principle qualify for the zero-rate.
HMRC confirms that it is accepting claims from businesses that
have accounted for and paid VAT on supplies of charity advertisements that are
now considered to be zero-rated (subject to the normal time limits and unjust
enrichment) so businesses, charities and their advisers are advised to promptly
review the VAT status of current and historic supplies of digital advertising.
HMRC has formally published new guidance which sets out (and
relaxes) its views on when digital advertising supplied to charities will
qualify for zero-rating. Revenue
& Customs Brief 12/2020 sets out HMRC’s views on the VAT status of
a number of different types of digital advertising supplied to charities. This
is the first time HMRC has formally published this level of detail on the
subject.
There is an important difference in the position set out by
HMRC in this brief as compared to the position set out in correspondence with
the Charity
Tax Group in July 2020, namely HMRC now accepts that ‘location targeting’
(where individuals opt in to provide location data, and this information is
collected and combined into large datasets to target audiences who have visited
particular areas) can in principle qualify for the zero-rate.
HMRC confirms that it is accepting claims from businesses that
have accounted for and paid VAT on supplies of charity advertisements that are
now considered to be zero-rated (subject to the normal time limits and unjust
enrichment) so businesses, charities and their advisers are advised to promptly
review the VAT status of current and historic supplies of digital advertising.
