The government has brought forward legislation to zero rate electronic publications in a move to make them more affordable for people confined to their homes or affected financially by coronavirus. Zero-rating was originally due to take effect on 1 December 2020 but now applies from today, 1 May.
Zero-rating applies to the sale of:
- books and booklets
- brochures
- pamphlets
- leaflets
- newspapers
- journals and periodicals
- children’s picture and painting books.
Lending fees for these types of publication are also zero-rated from today.
Exclusions
Zero-rating doesn’t apply to the following types of electronic publication, they remain standard-rated:
- advertising – where more than half the content is advertisements
- audiobooks
- intellectual property such as licences, plans, technical drawings, etc.
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.