What is new? What is VAT? There are five categories of voluntary registrations: The first category applies to a specific type of person where there is no threshold for the value of taxable supplies. The second category applies to a person that has made R50 in the past period of twelve months. The third category applies to a person where the value of taxable supplies has not exceeded R50 and the conditions for registration are listed in a Regulation.
The fourth category applies to a person that has acquired a business as a going concern. The fifth category applies to a person that carries on a specific nature of activity as listed in a Regulation. In addition, there are other general requirements that must also be met for a voluntarily registration for VAT. Table of Contents. Last Updated:. Share this page on:.
Share on facebook Facebook. Share on twitter Twitter. Share on linkedin LinkedIn. Share on email Email. Share on print Print. Payment method. VAT return due date. Payment due date. When you supply books or magazines packaged with another item, you must determine whether they constitute single or multiple supplies, in line with the principles established in the European Court of Justice judgment in Card Protection Plan CPP and subsequent decisions.
You make a single supply when one element of the supply is the principal element to which all the other elements are ancillary, integral or incidental.
An ancillary element does not constitute, for the customer, an aim in itself, but is a means of better enjoying the principal service or goods supplied. Integral elements are elements that are essential, necessary or incidental to the main supply. An incidental element is something that naturally accompanies the main supply, such as packaging.
You make a multiple supply if one or more element is distinct and independent. The following points may indicate that more than one supply is taking place:. There are three possible liability outcomes if zero-rated printed matter is supplied with other items:. Sometimes it is easy to identify a multiple supply, as items supplied together can be used independently of each other. It is quite possible to use the film or tape independently of the book and, indeed, they need separate equipment to use them.
Similarly, a child can use a felt-tip pen on any paper of their choice, it is sold with a colouring book as a marketing device. These may contain zero-rated books or booklets and standard-rated items such as jigsaw puzzles or toys. You need to decide whether the omission of any one component part would diminish the pack as a whole. It is not possible to give overall guidelines on these activity packs as each one is different, and must be judged on its own merits.
Where you make a multiple supply of a package consisting entirely of items printed on paper or card, you have a choice. You can account for VAT by apportionment between the standard-rated and zero-rated elements or you can apply the package test. For this purpose, a package is a collection of items printed on paper or card usually enclosed in some sort of wrapper. The articles must physically form a package and have a common link in that they are intended to be used together, examples are:.
The package test may reduce your tax burden and be simpler than the apportionment described above. It operates as follows:. In the event that the standard and zero-rated elements cost exactly the same amount, apportionment should be applied.
If you supply a package to a charity you can treat some items connected with collecting monetary donations as zero-rated for the purposes of the package test. If you link a cover-mounted item such as a sachet of perfume or a CD to a magazine, you can treat it as zero-rated if all the following conditions are met:.
This linking of goods is normally done by the publisher, but can take place at any point in the distribution chain for example, distributor, retailer.
If at the point of linkage the supply satisfies the terms of this concession, it becomes a single zero-rated supply and will continue to be a single supply throughout the chain. If the supply does not satisfy the terms of the concession, you will have to consider whether the supply is a single or multiple supply under the normal rules explained above. Some contracts to supply services involve, to a greater or lesser extent, the production of goods zero-rated under Group 3.
If you supply such services, you should first consider whether the supply is either:. If your services are of an original or specialist nature see paragraph 7. If your service is of the production of goods, then it will be zero-rated where your service has produced new goods and those goods are themselves zero-rated see paragraph 7. When you also supply goods with those services as incidental products then you must standard-rate those goods even if they are zero-rated under Group 3.
Here are some examples:. New goods are produced when the essential characteristics of the goods are altered. Note in particular in the following situations. Where you have a contract to supply items that qualify for zero rating, you may zero rate any preparatory or post-production work other than alterations that you perform in conjunction with it.
This applies whether or not you itemise the various processes on your tax invoice and charge for them separately, and even if you have employed sub-contractors. As a sub-contractor you can only zero rate work if you produce new zero-rated goods. If you do not produce zero-rated goods yourself, you cannot zero rate your supply even if you know that the final product will be zero-rated.
Therefore, if you provide typesetting only, your charge must be standard-rated. But if you bind pages together to make a book with cover you are producing a zero-rated item and your supply can be zero-rated. There will be occasions when a sub-contractor will need to charge VAT for a contribution to the production process, although the main printer may zero rate the supply to the final customer.
If these new goods would qualify for zero rating, then you have provided a zero-rated service. Any other service you provide is standard-rated including post-production alterations. For example, if you bind loose papers into a book, your service is zero-rated but if you re-cover or otherwise repair an old volume your services are standard-rated.
In the list below we give our views of the liability of items which are commonly the subject of queries about the zero rating for books. But you should not assume that an article is zero-rated under Group 3 just because it is not shown as standard-rated in the list, or determine liability by referring only to this list.
You must satisfy yourself by reference to the general body of guidance in this notice that the product qualifies for zero rating under one of the items of Group 3 reproduced at paragraph 1. With effect from 1 May , the publications falling in items 1 to 3 of Group 3 see section 1.
The following section provides guidance on the supplies of e-publications with more detailed guidance available in VBOOKS The terms e-books, e-newspapers, e-magazines, e-journals etc. To determine whether an e-publication falls within the zero rate it is necessary to consider its characteristics and purpose.
Guidance can be found in section 3 — although some of the physical characteristics that apply to printed matter will not apply to e-publications. In many cases, it will be clear whether or not the supply of an e-publication qualifies for the zero rate by considering its characteristics and purpose without carrying out a detailed assessment. For example, an e-publication that is subject to editorial control, focused on delivering news and providing analysis and commentary on news stories is likely to be a zero-rated newspaper.
This would apply to online newspapers that are updated periodically and is not limited to static digital versions of printed newspapers. However, where an e-publication has no clear purpose, it will be necessary to consider the characteristics and purposes of the publication in more detail and to make an assessment based on the facts in each case. Determining whether an e-publication is predominantly devoted to advertising, audio or video content in many cases will be resolved by considering the purpose of the product.
However, where a product has no clear purpose, businesses will need to consider all the facts and circumstances and objectively assess the relative mix of content. In some cases, it may be appropriate to measure different types of content by performing a numerical calculation.
For instance, comparing the number of news articles with the number of advertisements and video clips or by carrying out a word count or by looking at the amount of space taken up. The supply of an e-publication that does not exist in printed form will qualify for the zero rate provided it is one of the publications in section 9. The extension to the zero rate applies only to books that were already zero-rated under UK law, when they are supplied electronically.
As such, zero rating is limited to electronic equivalents of books that can be read or looked at. This includes books that are supplied electronically but which are not sold in printed form. Supplies of audiobooks remain taxable at the standard rate whether supplied in a physical or digital format.
There are different payment models for accessing e-publications — for example, pay per day, pay per publication and traditional subscription models.
Provided that the supply of the e-publication qualifies for the zero rate, the form of payment or consideration may be in any form. Where a business charges a fee to its customers to access a number of zero-rated e-publications, the supply will be zero-rated. Where a charge is made to access a mixture of standard and zero-rated e-publications, it will be necessary to apportion the fee between the standard and zero-rated elements on a fair and reasonable basis — refer to Notice section E-book readers are one form of hardware to which e-books can be downloaded before being read but are not in themselves e-books.
Therefore, supplies of such software are standard rated. The lending of any zero-rated e-publications for a charge for example, by a library is zero-rated. Supplies of intellectual property, even if they are supplied electronically, are not supplies of e-publications and are always standard rated. Electronically supplied plans or drawings for industrial, architectural, engineering, commercial or similar purposes are specifically excluded in the legislation.
The objective of the change to zero rate certain e-publications is to support literacy and reading in all of its forms, allowing e-books, e-newspapers, e-magazines and academic e-journals to be entitled to the same VAT treatment as their physical counterparts. The scope of the measure does therefore allow for the zero rating of supplies of music manuscripts, maps and charts when they are in the form of one of the publications listed in section 9.
However, this does not cover standalone items described in items 4 and 5 of Group 3 of Schedule 8 VATA such as digital music manuscripts, maps or charts. The zero rate for e-publications applies to supplies made on or after 1 May In cases where there has been a payment for qualifying e-publications prior to 1 May and the supply is received on or after 1 May, businesses can opt to account for VAT at the date on which the supply of the service takes place instead of the date when the payment is received — and so apply the zero rate.
If you have any feedback about this notice please email: customerexperience. Find out how HMRC uses the information we hold about you. Book your coronavirus vaccination and booster dose on the NHS website. To help us improve GOV. It will take only 2 minutes to fill in. Cookies on GOV. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. Hide this message. Home VAT. Contents Detail 1.
Overview 2. The format of the Group 3 items 3. Meaning of the Group 3 items 4. Items not included within any of the Group 3 items 5. Related supplies 6. Single and multiple supplies 7.
Production of zero-rated goods 8. Liability of some common items of printed matter 9. Print this page. Overview 1. Schedule 8, Group 3 sets out books, which may be zero-rated as follows: Group 3 - Books. Item No. Books, booklets, brochures, pamphlets and leaflets. Newspapers, journals and periodicals. Music printed, duplicated or manuscript. Maps, charts and topographical plans. Covers, cases and other articles supplied with items 1 to 5 and not separately accounted for.
The publications listed in Items 1 to 3 when supplied electronically, but excluding publications which: a are wholly or predominantly devoted to advertising, or b consist wholly or predominantly of audio or video content Note: 1 Items 1 to 7: a do not include plans or drawings for industrial, architectural, engineering, commercial or similar purposes 1A Items 1 to 6 include the supply of the services described in paragraph 1 1 of Schedule 4 in respect of goods comprised in the items.
The format of the Group 3 items The words in Group 3 are used in their ordinary, everyday sense. Meaning of the Group 3 items The meaning of the individual items is explained in detail here. Supplies of any of the following are zero-rated: literary works reference books directories and catalogues antique books collections of letters or documents permanently bound in covers loose-leaf books, manuals or instructions, whether complete with their binder or not amendments to zero-rated loose-leaf books, even if issued separately School work books and other educational texts in question and answer format, are zero-rated because the spaces provided for the insertion of answers are incidental to the essential character of the book or booklet.
Leaflets normally: consist of a single sheet of paper not greater than international standard A4 in size larger publications up to A2 size can be zero-rated provided that they are printed on both sides, folded down to A4 size or smaller and meet the other conditions are intended to be held in the hand for reading by individuals rather than for hanging up for general display convey information are complete and not a part work are supplied in sufficient quantity at least 50 copies to permit general distribution are printed on limp paper will either be of an ephemeral nature designed to be read a few times and then thrown away or be designed to accompany some other product or service, for example an instruction leaflet Items printed on stiff paper and card are not automatically excluded from the definition of leaflets.
Examples of items that would not be leaflets would be those designed to be used for any of the following: as a calendar to obtain admission to premises to obtain a discount on goods or services as reference material for completion or return see paragraph 3. Publications which do not contain a substantial amount of news are not newspapers.
These publications have one of the 4 following themes: 1. Pornography and gratuitous nudity Publications that contain scenes of pornography or gratuitous nudity. Violence Publications that contain scenes of violence. Illegal acts Publications that depict illegal acts. How the colouring and dot-to-dot books should be advertised or held out for sale While the colouring and dot-to dot books do not need to specifically state they are for sale to children to benefit from the zero rate, they must not state that they are suitable or specifically aimed at adults or grown-ups or any similar phrase.
It may be: instrumental or vocal printed or hand-written bound or on loose sheets illustrated or not in any system of notation, including numerical symbols or Braille Music rolls and blank music manuscript are standard-rated. But supplies of any of these are standard-rated: plans or drawings for industrial, architectural, engineering, commercial or similar purposes, in any format framed maps whose primary purpose is decorative posters pictorial wall charts aerial photographs globes, three dimensional models and similar articles decorative maps printed or woven into textile articles such as scarves, handkerchiefs, tea-towels, tapestries, rugs 4.
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