Extract from
VAT Notice 701/10
The following is taken from the HM Customs
and Excise VAT Notice 701/10, Zero-Rating of Books etc. dated August 2003.
You can download the full Notice using the links below.
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notice 701/10 from the HMCE website [PDF]
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3.1 Books and booklets
These normally consist of text or illustrations, bound in a cover stiffer than
their pages. They may be printed in any language or characters (including Braille
or shorthand), photocopied, typed or hand-written, so long as they are found
in book or booklet form.
Supplies of any of the following are zero-rated:
- literary works;
- reference books;
- directories and catalogues;
- antique books;
- collections of letters or documents permanently bound in covers;
- loose-leaf books, manuals or instructions, whether complete with their
binder or not; and
- amendments to zero-rated loose-leaf books, even if issued separately.
School work books and other educational texts
in question and answer format, are zero-rated because the spaces provided
for the insertion of answers are incidental to the essential character of
the book or booklet. The same applies to exam papers in question and answer
format provided they qualify as books, booklets, brochures, pamphlets or
leaflets.
But supplies of the following are standard-rated:
- books of plans or drawings for industrial, architectural, engineering,
commercial or similar purposes;
- picture card and stamp albums, unless they contain a substantial amount
of reading matter which is complete in itself, and no more than 25% of
the album is set aside for the mounting of cards and stamps;
- completed stamp albums; and
- products that are essentially stationery items, for example, diaries
and address books.
3.2 Brochures and pamphlets
These are not defined in law and whether a
particular product qualifies as a brochure or pamphlet is a matter of fact
and impression.
Brochures usually consist of several sheets
of reading matter fastened or folded together, which are not necessarily
bound in covers. They usually contain advertising material in the form of
text or illustrations.
Pamphlets are similar, but are usually comprised of material of a political,
social or intellectual nature.
Single sheet brochures and "Wallet" type
brochures designed with a flap may be zero-rated provided they:
- convey information; and
- contain a substantial amount of text, with some indication of contents
or of the issuing organisation; and
- are not primarily designed to hold other items; and
- are supplied complete.
3.3 Leaflets
These are also not defined in law and again
whether a particular product qualifies as a leaflet is a matter of fact and
impression. Leaflets normally:
- consist of a single sheet of paper not greater than international standard
A4 in size (larger publications up to A2 size can be zero-rated provided
that they are printed on both sides, folded down to A4 size or smaller
and meet the other conditions);
- are intended to be held in the hand for reading by individuals (rather
than for hanging up for general display);
- convey information;
- are complete (and not a part work);
- are supplied in sufficient quantity (at least 50 copies) to permit general
distribution;
- are printed on limp paper; and
- will either be of an ephemeral nature (designed to be read a few times
and then thrown away) or be designed to accompany some other product or
service, for example an instruction leaflet.
Items printed on stiff paper and card are not
automatically excluded from the definition of leaflets. However we do regard
the use of stiff paper and card as an indicator that the items have a function
which would exclude them.
For example if the item’s main function
were designed to be kept or used for a specific purpose in its own right,
rather as ancillary to another supply, it would not be a leaflet. Examples
of items that would not be leaflets would be those designed to be used for
any of the following:
- as a calendar;
- to obtain admission to premises;
- to obtain a discount on goods or services;
- as reference material; or
- for completion or return (see paragraph 3.4).
We consider that items printed on laminated
paper are designed to be kept and therefore not leaflets. On the other hand,
orders of service are not normally designed to be kept and may be zero-rated.
3.4 Items with areas for completion
Items which might otherwise be considered
to be leaflets, brochures and pamphlets may not be zero-rated if they are
primarily intended for completion or detachment. This distinguishes brochures,
pamphlets and leaflets from standard-rated forms.
We 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.
Where there is both an area for completion
and a part to be detached and returned, then the two together must not exceed
25% of the total area of the publication.
If you have items with areas for completion or detachment which does exceed
25%, but you consider they are nevertheless not primarily forms or other stationery,
you should obtain a written ruling from our National Advice Service before
zero-rating them.
Whatever the area for completion, a publication
which is designed to be returned whole after completion is always standard-rated.
