UT holds that digital newspapers are zero rated for VAT
UT holds that digital newspapers are zero rated for VAT
Mon 03 Feb 2020
In the case of News Corp UK & Ireland Ltd the Upper Tribunal has reversed the decision of the earlier First tier Tribunal and held that digitally supplied versions of The Times, The Sunday Times, The Sun and The Sun on Sunday come within the UK’s zero rating provisions. This decision means that such supplies can be treated as zero rated as far back as 1972, as it is UK law which is relevant, not EU law.
This could have implications for other forms of digital print provided in the UK and such providers should be considering the opportunity to reclaim any overpaid output VAT, subject to the rules for unjust enrichment. The implications for HMRC may be significant so the case may yet be appealed.
For further advice on this area, please get in touch with a member of the Mazars indirect tax team.
Zero rating of e-publications in the UK applies from 1 May 2020
Due to the Covid-19 lock-down the Government has decided to bring forward the commencement date for zero rating e-publications from 1 December to 1 May 2020. See here and Revenue and Customs Brief 3/2020. With effect from 1 May 2020, electronic supplies of the products listed below, unless they are wholly or predominantly devoted to […]
Termination clause in a VAT zero rating agreement fatal to judicial review application
Metropolitan International Schools’ judicial review application of HMRC’s refusal to extend the date of termination of an HMRC agreement for zero rating of the sale of study books for existing contracts, has failed. While the Upper Tribunal considered that Metropolitan had a rational case for judicial review, it considered the clause in the agreement with […]
FTT criticises HMRC guidance on distinguishing between confectionary and cakes
In the complex VAT area of determining whether a food item is confectionary (standard rated for VAT) or a cake (zero rated for VAT), the First tier Tribunal has held that HMRC’s guidance is not fit for purpose. For further advice on the VAT issues associated food, please get in touch with a member of […]
EU directive on aligning VAT treatment of printed and electronic reading material
The amending Directive permitting member states to reduce the VAT rate on electronic books came into effect on 4 December. The EU press release comments as follows: For physical publications – books, newspapers and periodicals – member states currently have the option of applying a ‘reduced’ VAT rate, i.e. minimum 5%. Some have been authorised […]
VAT treatment of electrical supplies for the construction of student accommodation
The Upper Tribunal (UT) has upheld the First tier Tribunal’s decision that Summit Electrical Installation Ltd’s supplies of electrical installations in the construction of student accommodation in Leicester, were not precluded from being zero rated by a requirement of planning permission that the accommodation only be used in connection with student accommodation. VATA 1994 Sch8 […]
No zero rating on first grant of a new dwelling created from a part residential/part non-residential property
The Upper Tribunal (UT) has agreed with the First tier Tribunal (FTT) in MacPherson and reversed the decision in Languard New Homes Ltd. The UT heard the two cases together because they both concerned the same point of law. The UT held that the application of zero rating to the first grant of an interest […]
Dwellings formed from more than one building
HMRC have recently published a Revenue and Customs Brief to clarify the change in their historic position which precluded, for VAT purposes, a single dwelling to be formed from more than one building. Following the cases of Mark Catchpole and Mr T Fox, HMRC now accept that a dwelling can be formed from more than […]