Electronic publications

VAT treatment of digital editions of newspapers

The main issue in the appeal was whether the daily digital editions of the titles were newspapers within the meaning of VATA 1994 Sch 8 group 3 item 2.

The taxpayer said the purpose of zero rating newspapers was to disseminate knowledge and information to aid literacy and to further the democratic process. Those features ‘were as true of the digital editions of the titles as they were of the print editions’. The online editions did not constitute a rolling news service. The aim was to offer ‘curated news’ – the editorial team had to be sure it understood a particular story before putting it into an online edition. Further the taxpayer argued that the law should be interpreted purposively: ‘Legislation once enacted had to be kept up to date with inter alia technological advances.’

The...