Sayer Vincent on VAT on SMS donations
Howard Lake | 19 May 2005 | News
Consultants and auditors Sayer Vincent have shared advice from Revenue and Customs on VAT treatment of donations made by text messaging or SMS.
In their latest email newsletter Sayer Vincent address the speculation that VAT was due on the whole amount paid by the donor under SMS donations, and not just on the charge levied by the telecom company.
The London-based company have asked for ./guidance from Her Majesty’s Revenue and Customs which has confirmed that charitable donations that are freely given are outside the scope of VAT. The amount passed on to the charity will be a donation and therefore outside the scope of VAT.
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However, VAT is due on any charge a telecom company makes to a subscriber in return for providing the text message service.
Sayer Vincent add that “the only deduction from the amount paid by the donor should be the charge levied by the telecom company, on which 17.5% VAT may be levied by VAT registered companies.”
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.