What are the VAT Differences Between Publications?
EU Council addresses VAT differences between electronic publications and physical publications
The e-publication directive has been adopted by the EU Council after an agreement was reached on 2 October 2018. Effective from 6 November 2018, the Council is allowing alignment of VAT rules for electronic and physical publications. This has opened up the possibility for the UK to implement a zero rate VAT into English law if our Government wishes to do so.
Current VAT rules
Under the current VAT rules (directive 2006/112/EC), electronically supplied services are taxed at the standard VAT rate, whereas physical publications such as books, newspapers and periodicals in the UK are zero rated.
Other EU countries treat these supplies of physical publications as reduced (not zero rated as we do in the UK) and this directive allows all member states to apply the reduced rate of VAT to their electronic publications as well. The zero rates will only be allowed for member states that currently apply them to ‘physical’ publications.
In summary
To summarise this directive will allow the UK, if it so wishes to apply zero rate VAT to its electronic publications as well.
VAT Guides
HMRC is Tackling Online VAT Fraud
Annette Woods
15th November 2018
Related News Articles
HMRC’s New R&D Disclosure Service: What You Need to Know
A new disclosure facility has been introduced to help companies address inaccuracies in historic R&D tax relief claims. Who is affected, and how should you use this facility if necessary? Due to the prevalence of errors and fraudulent claims in R&D tax relief, HMRC has set up a new disclosure facility for overclaimed relief. This…
Private School VAT FAQ
What has Changed? From 1 January 2025, all supplies of education, vocational training, and board & lodge made by a private school will be subject to VAT at the standard rate (20%). The draft legislation defines a private school as a school/institute that provides full-time education for pupils of compulsory school age (and those up…
UPDATE: Fuel Rates for Company Car Drivers
The reimbursement rates for employees using company cars for business travel have been updated as of 1 September 2024. These Advisory Fuel Rates (AFRs), set by HMRC, are revised every quarter to reflect changes in fuel prices. The AFRs specify the maximum amounts that can be reimbursed to employees for business mileage in a company…