Positive news for charities as HMRC now considers that five types of digital advertising should be zero-rated
In a recent update dated 20th July 2020, it was announced that following a discussion between HMRC and the Charities Tax Group, as well as between DSCA, IPA and AA, HMRC now considers retargeting, behavioural targeting, demographic targeting, audience targeting and lookalike targeting to be zero-rated for VAT.
This is great news for Charities using digital marketing, helping them at a difficult time to get more value from their precious budgets. As always it is best to seek clarification from your professional advisors but on the face of it this is good news for charities at a time their marketing budgets need to stretch further than ever before.
If you are a charity looking to take advantage of the new HMRC rates across behavioural targeting, demographic targeting, audience targeting or lookalike targeting, please get in touch below. We would love to help you.