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Charity Advertising - ‘Pay-Per-Click’ services (PPC)

HMRC have recently announced a change to the treatment of PPC services provided to charities. Many charities currently pay search engine providers for each time their websites are accessed through a sponsored link.

Charities benefit from a zero rate relief on certain types of advertising services.  Historically, HMRC did not view PPC services as advertising and so VAT was applied.

HMRC now accept that PPC sponsored links to charity websites can be zero rated.

Revenue & Customs Brief 25/10 contains full background and details of the change.

Charities who have paid VAT on this type of service in the last four years should seek a refund from their providers who will, in turn, obtain refunds from HMRC.

We will be blogging on SME Plus Blog and Tax Plus Blog on Budget day.  If you do not already subscribe to our blogs click here for SME Plus Blog or here for Tax Plus Blog to ensure you get our comment and analysis as and when it happens. 

Jane Stacey is a VAT adviser and a senior manager at Mercer & Hole.  The views given in this blog are personal to the author, if you would like to discuss the contents of this blog with Jane you can call her on 01727 869141.



Date: 15th June, 2010
Author: Jane Stacey


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