The notice explains which advertising services and closely related goods are zero rated when supplied to a charity as well as which goods for the collection of donations can be zero rated by concession.

Any charity qualifies for zero rating as long as the advertising is supplied by a third party however, the relief is not available for supplies to trading companies.

The relief covers all types of advertisements on any given subject and is available on any media as long as the advertisement communicates with the public. For example, television, newspapers, billboards etc.

Relief cannot be claimed if the advertisement is targeting selected individuals or groups. This includes when people are selected at their home, business or email address or if they are individually named.

The following methods of advertising are excluded from zero rating:

• direct mail and telesales;
• anything on a charity’s own internet ;
• advertisements where there is no supply of time or space to the charity, for example, an advertisement on a charity’s own greeting cards;
• exhibition stands and space;
• services of distribution; and
• commemorative items whether or not they bear the charity’s logo, for example, pens and adult clothing.

Collection boxes qualify for zero rating providing that they are secure, are clearly presented as a charity collection box and bear the name of the charity.

VAT Notice 701/58: charity advertising and goods connected with collecting donations is available here.