As of January 2014, VAT may now apply to donations collected on some networks via LikeCharity.
Though mobile charitable donations are exempt from VAT, a technical issue exists whereby VAT is applied by some networks; compounding this issue is the manner in which the Revenue Commissioners currently treats VAT on mobile top-ups. Until now mobile networks have been gifting your charity the equivalent VAT amount from their own charitable programmes.
Restrictions are now in place on the amount of VAT that will be subsidised by some network operators.
Your monthly statement from LikeCharity will clearly outline where VAT has applied.
In terms of your organisation’s advertising, you will now need to convey this fact.
For example; “Between 81% and 100% of your €X goes to CharityName” or “All proceeds go to CharityName. VAT may apply on some networks”.
This wording is subject to ComReg’s code of practice and their office may offer specific wording.
LikeCharity will circulate any official wording if ComReg provide it.
If you are currently planning a mobile giving campaign, please be advised that the money raised may be subject to VAT and as such this needs to be communicated in your advertising. Please contact ComReg directly should you require an immediate determination on the terms and conditions you should include.
Charities are not charged any fees for the collection of mobile donations via LikeCharity. All proceeds raised go to charity.