Is there VAT on publications?

The Value Added Tax Act 1994, section 30 provides for the zero rating of goods listed in Schedule 8 to the Act. Schedule 8, Group 3 sets out books, which may be zero-rated as follows: Books, booklets, brochures, pamphlets and leaflets. Newspapers, journals and periodicals.

Do you pay VAT on digital books?

Chancellor of the Exchequer Rishi Sunak said: We want to make it as easy as possible for people across the UK to get hold of the books they want whilst they are staying at home and saving lives. The price of an e-book will now be VAT-free.

Is there VAT on digital magazines?

Digital publications are currently taxed at 20% in the UK whereas printed publications have been exempt from VAT since its introduction in 1973, ‘on the general principle of avoiding a tax on knowledge’.

Are ebooks zero rated?

The sale of e-audio books continues to be standard rated in UK law in line with government policy. Legislation was introduced in the Finance Act 2011 to counter avoidance schemes entered into by some businesses that artificially split supplies so that they could benefit from the zero rate for printed matter.

Do you pay VAT on imported books?

There is a very useful UK Government website www.trade-tariff.service.gov.uk that can better answer many of the queries you may have than this article can. The key thing is that virtually all books and magazines are ZERO VAT RATED.

Do books attract VAT?

Sales of printed books, newspapers and magazines are exempt from VAT in the UK, while their online equivalents are taxed. VAT generated £108bn a year in the UK last year, representing 21pc of the country’s annual tax revenues.

Is VAT payable on imported books?

Is there VAT on digital newspaper subscriptions?

Since the e-newspaper and printed newspaper are both zero rated, the subscription will be zero rated for VAT purposes.

Are books VAT exempt or zero rated?

Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. The goods covered by this classification are items such as children’s clothes and footwear, water, basic foods, books and newspapers.

Are books VAT exempt or zero-rated?

Are book sales VAT exempt or zero-rated?

Items that are entitled to the VAT zero rate The following electronically supplied products are now eligible for the zero rate of VAT: books. booklets. brochures.

Is import VAT the same as VAT?

VAT on imports is generally charged at the same rate as is used within the UK. You can usually account for import VAT on your VAT return. If you are not registered for VAT, or the goods are not for business use, you have to pay import VAT and cannot reclaim it.

When does VAT go into effect for e publications?

The government announced at Budget, on 11 March 2020, that it intended to legislate to apply a permanent zero rate of VAT to supplies of certain electronic publications (‘e-publications’) with effect from 1 December 2020.

Are there any VAT reductions for electronic books?

Council agrees on reduced VAT for e-publications. On 2 October, the Council agreed a proposal allowing member states to apply reduced, super-reduced or zero VAT rates to electronic publications, thereby allowing alignment of VAT rules for electronic and physical publications.

Is the rate of VAT applicable on a non-fiction publication?

The rate of VAT applicable will depend on the place of supply. This in turn depends on whether the content of the publication is fiction or non-fiction (you couldn’t make this up !). Fiction is supplied where the supplier belongs but non-fiction depends on where the customer or supplier is located according to the rules in VATA 1994, Sch 5, para 3.

Who is exempt from VAT on electronic publications?

Businesses that supply certain electronic publications, as well as businesses, organisations and members of the public that purchase those publications.