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.
By Jo Nockels
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