VAT and Charitable Donations via SMS Text Message

The provision of telecommunications services is liable to VAT at the standard rate, currently 21%. Charitable donations are not deemed to be consideration for a supply and are therefore outside the scope of VAT. Generally speaking, the donations in question are made where an individual texts an SMS shortcode specific to a charity, with the intention of donating money to that charity. Following receipt of that text message, a separate message is sent to the individual and the amount that represents the donation is debited to their bill or to their prepaid phone credit, as the case may be.