Phone companies persist in adding VAT to text donations

By David Ainsworth, Third Sector, 12 March 2008

Mobile phone companies have continued to charge VAT on charitable donations sent by text message, despite knowing for two years they should not be doing so.

VAT on text donations is estimated to cost the sector about £1m a year - but Jane Kennedy, financial secretary to the Treasury, confirmed to Parliament last week that charities should not be paying it. Phone companies have known this since 2006, according to Maria Diaz, e-communications manager at the...

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