VAT scrapped on e-publications

The promise to zero rate VAT on e-books and e-newspapers has been fast-tracked by the government in a bid to boost publishers hit by the coronavirus outbreak.

Chancellor Rishi Sunak said the zero rate of VAT will apply to all e-publications from 1 May 2020 – seven months ahead of schedule – potentially slashing the cost of a £12 e-book by £2 and e-newspapers subscriptions by up to £25 a year. Previously the standard VAT rate of 20% applied to digital publications.

In support of the print newspaper industry the government has also announced it will be spending up to £35m on newspaper advertising over the next three months as part of its Covid-19 communications campaign to ensure the whole UK is aware of the latest government guidance and advice.

The extra advertising revenue will be split between local regional and national print media. These...