Has your advertising budget seen a 20% reduction to accommodate VAT? Not any longer.
Advertising services for registered charities have traditionally been considered zero rated and not subjected to VAT.
But recently universities and colleges in the UK have been asked to contribute 20% of VAT to their advertising budgets.
Today we are pleased to announce that through close consultation with HMRC (including a forensic inspection) digital advertising through Akero is confirmed as zero-rated for VAT.
Whilst the legislation never changed, interpretation as to what is considered “individual targeting” changed to include some social media and programmatic advertising.
As an omnichannel digital advertising platform powered by AI, dedicated to a specific audience, we have challenged this change in interpretation for the past two years. Our challenge has been two-fold:
- Akero is a student specialist advertising platform and so our blended targeting methods for this specific audience (content, device and dayparting) are exceptional to the interpretation
- Our platform and experts respond agilely, moving budgets across digital platforms to constantly optimise towards performance not targeting the individual
And now we can confirm that this has been accepted and confirmed by HMRC.
This is excellent news for the whole of the education sector that has had to accommodate 20% VAT into their budgets.
We love the wins, like the amazing feedback we have had from launching our asset management platform, our seamless integrations with leading platforms and, of course, our AI awards. But this is special, and is a win for the sector.
For more information and how Akero can help you, get in touch with our experts today.