Charity VAT Exemption
Advertising with Living Magazines
At Berkhamsted Living and Tring Living Magazines we are delighted to offer all registered charities a discount of 30% off the rate card of our display adverts.
Advertising in Living Magazines can qualify for zero rating, whether printed or online. This can also include the design and artwork costs, if required. It is not necessary for the design and preparation costs to be included in the same invoice as the advertising itself.
This relief is available to charities whether or not they themselves are registered for VAT.
More can be read on this on the Gov.uk website here: https://www.gov.uk/guidance/vat-when-you-supply-services-or-goods-to-charities-notice-70158.
In order for zero-rating to apply the supply must be to a charity. A supply to a charity’s subsidiary trading company will not qualify for relief (see VCHAR2100).
NB. Supplies made to a trading subsidiary of a charity, such as a shop, are excluded from this relief. VAT-registered trading companies are still entitled to reclaim the VAT incurred on business expenses in the normal way. This is covered by the above notice at Section 2.1.
Leaflet Distribution with Living Magazines
If Living Magazines design and print your leaflet for distribution within the magazines then, as a package all three, ie, design, print and delivery, will be zero-rated.
VAT Notice 701/10 Section 3.3 refers. Visit the Gov.uk website here to view this notice.
However, leaflets (inserts) designed and printed elsewhere for distribution within the magazines will attract VAT on the delivery/distribution charge by Living Magazines, in the normal way.
VAT Notice 700/24 Section 3.3 refers. Visit the Gov.uk website here to view this notice in full.
As the supplier, it is our responsibility to ensure that the correct VAT rate is applied.
If you believe that your charity is exempt, please download, complete and return the form here to firstname.lastname@example.org.
Definitions of 8, 8A, 8B and 8C can be found online here. Reference to Group 15 can be found here.
For assistance in this matter, please call: 01442 824300.