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.