# Sayer Vincent on VAT on SMS donations

- Link: https://fundraising.co.uk/2005/05/19/sayer-vincent-vat-sms-donations/
- Published: 2005-05-19T23:00:00+01:00
- Author: Howard Lake

![](https://www.fundraising.co.uk/files/images/news/3290.jpg)

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.

However, VAT is due on any charge a telecom company makes to a subscriber in return
for providing the text message service.

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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.”

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