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News Corp: VAT treatment of digital newspapers

The Upper Tribunal has found that digital newspapers could be zero rated. Karen Killington (KPMG) examines the tribunal’s reasoning and discusses its implications.

The past is a foreign country they do things differently there.

When you read that sentence you might have thought ‘that sounds familiar where does it come from?’ The fact that you can find out that it is the opening line of The Go Between by LP Hartley with only a couple of clicks of your mouse neatly encapsulates the technological advances that have been made since 1972 when the Act that implemented VAT into the UK was debated in Parliament.

At that time Hansard records Mr Austen Albu MP of Edmonton who said (a propos of the scope of the zero rating for newspapers books etc.): ‘the amendment in my name refers to microfilm reproduction....

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