The VAT People logo
0161 477 6600

News

News

Welcome to our news section, where you can find all of our latest articles and newsletters, useful VAT advice and press releases. To ensure you never miss out on the latest news from The Vat People, why not sign up for our email newsletter?

Scroll down to read our news, explore our Advice Hub, read our latest newsletters and find out more about The Vat People Network.

VAT on Digital Advertising for Charities

There are reliefs available to charities whereby advertising services can be purchased at the zero rate subject to certain conditions. Excluded from relief are instances where a charity has selected a specific individual to receive advertisements. Examples of such advertisements that do not qualify for zero-rating include those sent to e-mail address as these are targeted to the specific recipient.

VAT for Charities

Calculating VAT can be an incredibly complicated process for charitable organisations. Therefore, it is no surprise that mistakes are commonly made among charities that fail to recognise they are applicable to many of the same rules as regular businesses. Further to this, The Office of Tax Simplification has initiated a review into the application of VAT with respect to reliefs and exemptions and as a result the House of Commons Treasury Committee has launched an inquiry into tax after coronavirus.

Defining Business/Non-Business Supplies for VAT

HMRC have published a Brief detailing a change in approach with regards to how to determine whether a supply is a business activity for VAT purposes. Supplies made ‘in the course or furtherance of any business’ are subject to VAT, with the appropriate rate out output tax due, subject to other considerations. Consequently, any business supplies made in the UK by a VAT registered person will likely fall within the scope of UK VAT.

One Stop Shop - Northern Ireland

As of 1st July 2021, the existing VATMOSS legislation for digital services was extended to encompass the One Stop Shop. On the withdrawal of EU distance selling threshold simplifications, UK businesses making qualifying sales to EU customers are required to account for VAT at the relevant rate in the country in which the customer is based using the One Stop Shop, without a requirement to register for VAT in each member state in which sales are made.