COVID 19- VAT scrapped on E-publications
Highlights:
- Implication of Zero rate of VAT upon all E-publications from 1st May 2020.
- Government spending of up to £35 million on newspaper advertising over the next 3 months
Zero rate of vat on E-Publications
Plans to scrap VAT on e-books and e-newspapers have been significantly fast-tracked in a boost to readers and publishers during the coronavirus outbreak, the Chancellor announced on 30th April.
Rishi Sunak said the zero rate of VAT will now apply to all e-publications from 4 May 2020- 7 months ahead of the original schedule – potentially slashing the cost of a £12 e-book by £2 and e-newspapers subscriptions by up to £25 a year.
This move will potentially slash the cost of e-books and newspapers making reading more accessible as people stay at home and it will be a boost both to readers in the form of cheaper e-books and e-newspapers, and the publishing industry who should benefit from a boost in sales.
The Government’s spending on newspaper industry
In support of the print newspaper industry, the government has also announced it will be spending up to £35 million on newspaper advertising over the next 3 months as part of its Covid-19 communications campaign to ensure the whole UK is aware of the latest government guidance and advice.
The £35 million extra advertising revenue will be split between local, regional and national print media, and will be a vital boost to the media industry. These plans will be constantly reviewed over the next three months to ensure the campaign is as effective as possible. Both the e-publications measure and the increased advertising spending are UK-wide.
