§ Mr. Simon CoombsTo ask the Chancellor of the Exchequer on what basis Customs and Excise assess liability for value added tax on the whole of an advertisement placed by a commercial company on behalf84W of a charitable organisation rather than on the value of that part of it that might be deemed to be promoting the company.
§ Mr. LilleyLiability for VAT is based on the nature of the agreement between the person making the supply and the person receiving it. If the person receiving the supply of advertising services is not a charity then there is no entitlement to VAT relief under the existing law.