The IPA has welcomed HMRC’s revised interpretation of the VAT legislation as it relates to supplies of digital advertising to charities. HMRC has said it now considers that re-targeting, behavioural targeting, demographic targeting, audience targeting and lookalike targeting are eligible for the zero rate of VAT.
Says David Clasen, Finance Director, IPA:
"HMRC's reconsidering its stance on these five types of advertising is good news. Charities’ budgets will stretch further as a result and this allows for knock-on beneficial effects for agencies working with charities.
"We are delighted with this development but note that there is still work to be done to get to a clear position respecting the original intent of the reliefs for charities. We shall continue to talk to DCMS and the Charity Tax Group on this matter."