Digitised Publishing - VAT treatment

I own a small digital printing business and will shortly exceed the VAT regsitration. Some of the products I sell would qualify for zero rating if they were printed so does this still apply if I sell digitised versions?

1st November 2008

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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