Zero rating did not apply to digital newspapers

The main issue in the appeal was whether daily digital editions of the taxpayer’s titles were newspapers within the meaning of VATA 1994 Sch 8 group 3 item 2 and liable to zero rating as claimed by the taxpayer. The Court of Appeal found in favour of HMRC after the Upper Tribunal had overturned the First-tier Tribunal’s dismissal of the taxpayer’s appeal. So the matter progressed to the Supreme Court.

In March 2020 the government confirmed that zero rating would be extended to all electronic newspaper publications with effect from 1 May 2020 (see Revenue and Customs Brief 3/2020: VAT liability of supplies of electronic publications). However this did not affect this appeal which related to the VAT periods September 2010 to June 2014 and 28 January 2013 to 4 December 2016.

Lord Hamblen and Lord Burrows delivered the lead judgment. They said the issues in the...