VAT on document downloads (white papers)

[milan_ns]

Company I work for sells:

a) journals (a book, a hard copy delivered by post)
b) online access to journals (timed subscription; customers purchase the right to read the book online for a limited period of time)
c) document downloads (customer purchases the right to download PDFs containing bits of the journal - so white papers)

Now, I know a) attracts zero VAT, but what about b) and c)?

I'd expect c) to be zero VAT as well, but few websites I've seen all charge VAT.

Help, anyone :)?

Thanks!

[David Griffiths]

The zero VAT classification is basically for printed matter. If it's not printed, it's standard rated.

[milan_ns]

What about a subscription package that includes printed material (the book) and access to online services?

Can it be argued that customer buys the book and gets the online access for free, hence zero VAT on the subscription?

Thanks for your help!

[David Griffiths]

What about a subscription package that includes printed material (the book) and access to online services?

Can it be argued that customer buys the book and gets the online access for free, hence zero VAT on the subscription? Thanks for your help!



Will you charge the same price for the printed book as you will charge for the printed book plus the online access?

[milan_ns]

Yes - book only and book with online access would cost the same (so online access comes free?).

I've just realized that it's what Economist does - subscribe to the magazine and get free online access. I guess it's zero VAT then?

[David Griffiths]

I guess it's zero VAT then?

Possibly. If you'd charged extra for the online access then you'd be struggling to say that it was free.

You are into the realms of making supplies with more than one element. There's more about that at section 6 in this link (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000102&propertyType=document#P198_20529)