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
• journals and periodicals
• children’s picture and painting books.
Lending fees for these types of publication are also zero-rated from today.
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
• intellectual property such as licences, plans, technical drawings, etc.
Please check more detailed guidance on what can and can’t be zero-rated and how to apply zero-rating if you supply a mix of standard and zero-rated products.
If you have any questions on this, please call Andrew Price on 01803 296678.