Charities to Benefit From Pay Per Click Tax Break

by Stephen Logan on 20th July 2010

Charities have learned that they will have their VAT refunded on money they spend on pay per click advertising.

HM Revenue and Customs (HMRC) recently announced that payments made by charities for pay per click services will be zero-rated for VAT purposes.

The move was welcomed by Julie Towers, VAT director at chartered accountants Francis Clark, who described it as “good news” for charitable organisations.

She told the Herald Express: “If a charity has paid VAT to its supplier in respect of such advertising, it should approach them and request credit notes and refunds in respect of the VAT overpaid.”

The suppliers of the pay per click services will then be able to reclaim on the overpaid amounts from HMRC.

Earlier this month, Econsultancy blogger Richard Hartigan stated that pay per click data can play an important role in giving companies a good idea about the most effective keyword choices for their website.