HMRC is writing to organisations that submitted claims for overpaid VAT on digital publications based on the earlier Upper Tribunal decision in News Corp UK and Ireland Ltd which had found zero rating could apply before May 2020. The department is asking whether they intend to proceed with their appeals in light of the Supreme Court’s decision ([2023] UKSC 7) which confirmed that zero rating does not apply before 2020.
HMRC has published an update on the VAT treatment of supplies of digital newspapers and other digital publications before 1 May 2020 following the Supreme Court decision.
The Supreme Court unanimously dismissed News Corp’s appeal confirming HMRC’s policy that supplies of digital publications before 1 May 2020 are standard rated. The judgment found that under the EU legal constraints imposed by the ‘standstill provision’ and the principle of ‘strict interpretation’ the ‘always speaking doctrine’ could...
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