VAT zero rating of books, leaflets and forms
HMRC have updated Notice 701/10 entitled ‘Zero-rating of books etc’. The notice cancels and replaces the previous version published in August 2003.
The notice reflects HMRC’s new policy which removes the requirement to obtain a written ruling in connection with the liability of certain items which contain areas for completion or detachment. Such items might otherwise be considered to be leaflets, brochures and pamphlets and may not be zero-rated if they are primarily intended for completion or detachment.
HMRC now accept that items are not primarily intended for completion or detachment if 25% or less of their total area consists of:
- Areas which are blank and available for completion, or
- Parts to be detached and returned.
In general the notice explains what items are eligible for zero-rating including books, booklets, brochures, pamphlets, leaflets, newspapers, journals and periodicals etc.