If Your Charity Uses Pay Per Click, You May be Due a Refund!


Following a change of policy, HM Revenue and Customs have now agreed tha ‘pay per click’ (ppc) advertising, when supplied to charities, should be zero-rated for VAT.
If your charity has paid for ppc sponsored links on Internet websites, you could be in line for a refund. The design and copyright related to sponsored ppc links will also qualify for zero-rating.
However, HMRC does not accept that search-engine optimisation services supplied to charities, including copy-writing services will qualify to be zero-rated.
Details of the new policy are contained in the new Revenue & Customs Brief 25/10.
Partner Note
From ICAEW Tax Faculty Brief, 15 June 2010.

Detailed guidance on charity advertising can be found in VAT Notice 701/58 'Charity advertising and goods connected with collecting donations’

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