Does your charity use a digital advertising platform? Until recently, it was HMRC’s position that VAT should be charged on internet search browsing advertisements, and often this cost was passed on by the advertising agency to the customer charity.
HMRC has recently changed its policy on digital advertising, which could result in significant VAT savings for some charities. VAT is no longer considered due on the majority of internet search browsing advertisements. However, there are exceptions, such as where the advertising is linked to a personal account.
You can find out more on the Charity Tax Group website, who also suggest taking professional advice from a VAT advisor if you remain unsure.