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In CRC v News Corp UK and Ireland Ltd [2021] EWCA Civ 91, the Court of Appeal found that supplies of digital publications before 1 May 2020 are standard rated.
In new guidance, HMRC confirms this decision does not affect the zero rate for supplies of some e-publications, including e-newspapers, which came into effect from 1 May 2020.
While the Court of Appeal decision supports HMRC’s policy, News Corp has sought permission to appeal the decision to the Supreme Court.
HMRC states that organisations may wish to protect their position by making claims for overpaid VAT based on the Upper Tribunal decision until the litigation has concluded. HMRC will reject the claim but the organisation will be at liberty to appeal that decision.
