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 First-tier Tribunal found they were not so the taxpayer appealed.

The digital versions in question were an e-reader edition which was an exact facsimile of the printed newspaper; a tablet edition which was an exact copy apart from some formatting changes; a website edition which was published as a complete edition overnight and updated three times the next day; and a smartphone edition which was derived from the website version.

The Upper Tribunal said it was common ground that the legislative purpose of zero rating newspapers was to promote literacy disseminate knowledge and information and to further the democratic process. The taxpayer recognising that the idea of digital newspapers was not even a concept when the legislation...