# MP calls for end to VAT on charity donations by SMS

- Link: https://fundraising.co.uk/2007/12/18/mp-calls-end-vat-charity-donations-sms/
- Published: 2007-12-18T15:27:52+00:00
- Author: Howard Lake

**Liberal Democrat MP Mark Oaten has tabled an Early Day Motion today calling upon
the Government to stop charging VAT on UK charity donations made by text. All other
methods of giving to charity are VAT exempt.**

Oaten argues that the levying of VAT is penalising charities for trying innovative
methods of fundraising and communications, and hindering a method of giving that
helps charities avoid the security issues of handling cash or the overheads associated
with cards and direct debit processing.

Following the extensive use of premium SMS donations in the wake of the December
2004 South Asian Tsunami, HMRC responded to public pressure and gave a one-off donation
to the appeal in compensation for the VAT charged.

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[Vir2 Ltd](http://www.vir2.co.uk), a premium SMS company which has offices in Mark
Oaten’s constituency, is hoping the Government will repeat that approach on a more
permanent basis. Roger Craven, Managing Director of the company, said: “Taking 17.5%
from donations made by premium SMS is clearly inconsistent and unfairly penalises
smaller charities.”

Vir2 favours creating ‘VAT free’ short codes that can only be used by registered
charities for the purpose of fundraising. The awarding of short codes is already
regulated by Ofcom and Phone Pay Plus.

Vir2 markets premium SMS, SMS marketing and fundraising solutions to charities, 
hospital trusts and universities through a marketing partnership with [Charity Technology Trust](http://www.ctt.org).
It also provides mobile lottery, bingo and scratch-card solutions to Age Concern
Enterprises under the Givitago™ brand name.

 * **[SMS fundraising ideas](https://fundraising.co.uk/2007/10/04/sms-fundraising-ideas/)(
   4 October 2007)
 * **[IoF welcomes latest SMS success](https://fundraising.co.uk/2009/07/29/iof-welcomes-latest-sms-success/)(
   29 July 2009)
 * **[Txtlocal launches charity short code SMS donations](https://fundraising.co.uk/2010/11/30/txtlocal-launches-charity-short-code-sms-donations/)(
   30 November 2010)**

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