02/02/2012

Stop Tax On Charity Texts – FF

Mobile phone providers have been incorrectly charging VAT on charitable donations made via text message, Fianna Fáil's Deputy Leader has said.

Éamon Ó Cuív the Finance Minister has revealed to the Dáil that although charitable donations are not subject to VAT, mobile phone providers have been charging VAT on donations made via text message.

“I have questioned the Finance Minister about this and he has confirmed that “donations made via SMS text message, excluding any fees charged by the telecommunications provider … are outside the scope of Irish VAT.”

“Meanwhile, mobile phone providers have claimed that their systems they don’t have the “technical ability” to distinguish between services liable to VAT and those exempt due to their charitable status. However, under Revenue Commissioner rules, the charities are unable to reclaim the VAT that has mistakenly been charged by their service provider."

Mr Ó Cuív said he understood that the phone providers were working to resolve the issue in the near future, but the reality is that money donated by citizens to charities has wrongly wound up in the State coffers.

(DW/GK)

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