VAT on Royalties

[amitr19]

Hi All

A tricky question:

An author has agreed to donate all his book royalties to a well known charity. The name & logo of the charity will be printed on each book stating that all proceeds go to charity. The charity is dealing directly with the publishing company.

Is this a donation or a supply of name & logo to the publisher/author? Does the charity need to invoice the publishing company + VAT?

I think the point I am making is that the charity is supplying its logo. This will most certainly drive the sales up for the book and provide publicity to the author. As such, it cannot be a pure donation.

Any thoughts?

AR

[section 44]

I think the point I am making is that the charity is supplying its logo.

I don't think HMRC would view this in this way, although I get your point.