Hey everyone - I had a question about being charged VAT as a charity for advertising services. I know there's a grey area around advertising services being VAT exempt but I wanted some clarification. 

Does this VAT exemption only count for the cost of advertising (e.g. what you pay google or Facebook for the ad budget). What about being invoiced by an agency? If they created a donation page for you, create the content for your advert, and send emails for you - does that come under advertising? And would that be VAT exempt? 

This is what HMRC say about it 

.1 VAT reliefs available
6.1.1 Advertising and goods connected with collecting donations
The supply of advertising to a charity is zero-rated. The zero rating covers advertisements on any subject, including staff recruitment. A charity can also buy pre-printed collecting boxes, envelopes and appeal letters at the zero rate. Low cost lapel stickers, emblems and badges that a charity gives in acknowledgement of a donation can also be zero-rated. More information can be found in Goods or services supplied to charities (VAT Notice 701/58).

If a printer produces a package of printed material for a charity, some of which is zero-rated and some of which is standard-rated, the printer may be able to zero rate the entire package. This is known as the package test. More information on the package test can be found in Zero rating books and printed matter (VAT Notice 701/10).