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Phone companies and Customs talk over dropping VAT on texts
By David Ainsworth, Third Sector, 16 April 2008
Mobile phone companies have met with HM Revenue & Customs officials to discuss eliminating VAT on donations to charity by text in a move that would cut the costs associated with text fundraising.
In a letter to the Charity Technology Trust two years ago, HMRC said that VAT should not be charged on text donations. However, phone companies have continued to charge charities an estimated £1m a year in VAT because they cannot distinguish donations from other premium-rate texts (Third Sector, 12 March)....
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