VAT - Change of Liability for "Pay Per Click" Advertising.

In recent years organisations have paid search engine providers to show a small advert for their websites on results pages when users have searched for linked words or phrases.

The search engine provider then charges the organisation a fee based on the number times users click the advert.

Historically HMRC did not agree that this was a supply of “advertising” but they have recently announced that they now accept it is a supply of “advertising”.

As such if this is supplied to a charity it can be zero-rated for VAT purposes.

Charities now have the ability to go back up to four years to obtain a refund of VAT either paid or self assessed on “Pay per click” advertising..

Please contact Andrew Norman – VAT Manager for further details (0207 556 1366)