Advertising

The supply of advertising to the University is zero-rated.  The advertising can be supplied in any form provided it is supplied by a third party.  The relief applies to all types of advertisement on any subject (including recruitment) including:

• The supply of advertising airtime on TV/Radio stations
• Adverts in the press/ publications
• Adverts on third party websites
• Design or production services of an advertisement
• “pay per click” internet advertising

Targeted advertising (where you identify the recipient in advance) does not qualify for the relief.

HMRC have clarified the following tax treatment in respect of online advertising

• Natural hits’ – standard rated
• Direct placements on third party websites – zero rated
• Social media adverts – standard rated
• “pay per click” internet advertising – zero rated

If you are considering on-line advertising we recommend discussing with your supplier the type of online advertising that you are receiving and therefore whether you can use the relief.

The most important factor to consider is whether the advert is placed on someone else’s space or time.  If it is not there will be no scope for this relief to apply.  For example the cost of advertising on our own space or property does not qualify for zero rating.

When receiving supplies of advertising VAT zero rated, the University must provide that third party with an eligibility declaration which confirms entitlement to VAT relief.