The UK government released the Budget 2020, being the first one after the UK has officialy left the EU. Among all the topics it covers, the budget brings important updates regarding ePublications(1), including eBooks and eMagazines.
The UK government will change the VAT rate applied to ePublications, bringing it down from the current 20% to 0% from 1 December 2020. Now eBooks, eNewspapers, eMagazines and academic eJournals will be entitled to the same VAT treatment as their physical counterparts.
Since the European Council agreed to allow member states to apply a reduced VAT rate to electronic publications in October 2018(2), various countries have already reduce their VAT rates(3)and the UK ePublishing industry was expecting the government to follow the same path.
Global VAT Compliance specializes in helping international business be VAT compliant around the world offering VAT solutions to Digital Companies, so if you can foresee these developments impacting your business, do not hesitate to contact us.