Update 30.04.20 | The zero VAT rate for e-books and publications is now in effect from 1st May 2020.
In the Budget, the UK Government announced a reduced VAT rate on e-books and publications. This is from the standard rate of 20% to the zero rate. The new e-books VAT rate is in effect from May 2020. This has been brought forward from December 2020, the original date announced in the Budget.
This will be good news for those in the publishing and media industries; they lobbied for the government to reduce the VAT rate to zero for the last few years. This move follows other EU Member States who have already aligned the VAT rates of electronic publications with their printed counterparts. It also follows hot on the heels of the recent Times Corp VAT case looking at the VAT treatment of online newspapers.
However, it should be noted that the change doesn’t apply to audio books which will remain at the standard rate.
If you are affected by zero VAT rate change for e-books, please contact one of VAT experts for further information.