Vat On Ebooks Uk Budget

Since the tax was introduced in 1973 printed.

Vat on ebooks uk budget. Chancellor rishi sunak has used his first budget to announce the abolition of what he called the reading tax stating that there would be no vat charged on books magazines or journals regardless of format from 1 december. Money sunak who made the announcement as he delivered the budget said that vat on digital publications including books newspapers magazines and academic journals will be scrapped from. Vat on digital publications abolished.

This is from the standard rate of 20 to the zero rate. Rishi sunak said the zero rate of vat will now apply to all e publications from tomorrow 1 may 2020 seven months ahead of schedule potentially slashing the cost of a 12 e book by 2 and. Yes the uk has the equivalent of what in the usa would be a 25 national sales tax print books had a 0 vat rate due to an elitist and archaic belief that books were unique cultural objects.

The uk government will change the vat rate applied to epublications bringing it down from the current 20 to 0 from 1 december 2020. The government will abolish the 20 reading tax on ebooks and online newspapers from december although it is unclear whether publishers will pass the full saving on to customers. Under the old rules no vat was collected on print books sold in the uk while 20 of the price of an ebook was paid to the uk government.

Now ebooks enewspapers emagazines and academic ejournals will be entitled to the same vat treatment as their physical counterparts. In the budget the uk government announced a reduced vat rate on e books and publications. 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.