The amendments operate to extend the zero rate to supplies of
e-books, e-booklets, e-brochures, e-pamphlets, e-leaflets, e-newspapers,
e-journals and e-periodicals (including magazines) as well as electronic
versions of children’s picture and painting books.
Electronic publications that are wholly or predominantly
devoted to advertising or to audible or video content are excluded. The sale of
e-audio books therefore continues to be standard rated.
Council Directive 2018/1713/EU provided the legal framework for
extending a reduced or zero rate for printed publications to electronic
versions, and the UK Government announced at Budget 2020 (11 March 2020) that
it intended to extend zero rating to supplies of certain electronic
publications, so that those supplies would receive the same VAT treatment as
supplies of their physical counterparts.
The change had originally been expected to take effect from 1
December 2020 but was accelerated as part of the UK’s coronavirus response. The
amendments have effect from 1 May 2020 to give immediate benefit to individuals
who are accessing digital publications online at home during the ‘lockdown’.
‘The change is welcome for consumers and also for the newspaper
industry, which has been hit hard by declines in sales as a result of the
coronavirus pandemic,’ said Catherine Robins, tax partner at Pinsent Masons. ‘However,
sellers of electronic publications have had very little time to implement the
necessary changes to their websites and their systems.’
The amendments operate to extend the zero rate to supplies of
e-books, e-booklets, e-brochures, e-pamphlets, e-leaflets, e-newspapers,
e-journals and e-periodicals (including magazines) as well as electronic
versions of children’s picture and painting books.
Electronic publications that are wholly or predominantly
devoted to advertising or to audible or video content are excluded. The sale of
e-audio books therefore continues to be standard rated.
Council Directive 2018/1713/EU provided the legal framework for
extending a reduced or zero rate for printed publications to electronic
versions, and the UK Government announced at Budget 2020 (11 March 2020) that
it intended to extend zero rating to supplies of certain electronic
publications, so that those supplies would receive the same VAT treatment as
supplies of their physical counterparts.
The change had originally been expected to take effect from 1
December 2020 but was accelerated as part of the UK’s coronavirus response. The
amendments have effect from 1 May 2020 to give immediate benefit to individuals
who are accessing digital publications online at home during the ‘lockdown’.
‘The change is welcome for consumers and also for the newspaper
industry, which has been hit hard by declines in sales as a result of the
coronavirus pandemic,’ said Catherine Robins, tax partner at Pinsent Masons. ‘However,
sellers of electronic publications have had very little time to implement the
necessary changes to their websites and their systems.’
