HMRC has updated its brief on the VAT treatment of supplies of digital newspapers and other digital publications prior to 1 May 2020. It replaces Revenue and Customs Brief 1/2020, following the Court of Appeal decision in News Corp UK and Ireland Ltd.
Before the introduction of the new zero rate for supplies of certain e-publications on 1 May 2020, the zero rate only applied to the sale of printed matter. Therefore, before 1 May 2020, the sale of digital newspapers has always been standard rated. News Corp had challenged HMRC policy but was rejected by the Court of Appeal.
News Corp has sought permission to appeal the decision to the Supreme Court so organisations may want to protect their position by making claims for overpaid VAT based on the Upper Tribunal decision until such time as the litigation has concluded.
This brief has no impact on the government’s introduction of the new zero rate for supplies of certain e-publications (including e-newspapers), which came into effect from 1 May 2020.
HMRC has updated its brief on the VAT treatment of supplies of digital newspapers and other digital publications prior to 1 May 2020. It replaces Revenue and Customs Brief 1/2020, following the Court of Appeal decision in News Corp UK and Ireland Ltd.
Before the introduction of the new zero rate for supplies of certain e-publications on 1 May 2020, the zero rate only applied to the sale of printed matter. Therefore, before 1 May 2020, the sale of digital newspapers has always been standard rated. News Corp had challenged HMRC policy but was rejected by the Court of Appeal.
News Corp has sought permission to appeal the decision to the Supreme Court so organisations may want to protect their position by making claims for overpaid VAT based on the Upper Tribunal decision until such time as the litigation has concluded.
This brief has no impact on the government’s introduction of the new zero rate for supplies of certain e-publications (including e-newspapers), which came into effect from 1 May 2020.
