Digitised Publishing - VAT treatment

First of all it is important to remember that digitised products are regarded as services – and while the zero-rating applies for printed supplies, which are categorised as goods, it does not apply for services.

As well as being classified as a service, the supply of a digitised product often provides greater functionality and is not necessarily the same as the traditional or non-electronic product .

This is quite a complex area of VAT ruling, and you may find HM Revenue & Customs VAT info sheet 01/03 a useful source of more detailed information about the VAT treatment of digitised publications, including e-books – or speak to your local TaxAssist Accountant for further guidance.

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.