March 11, 2020 | Lucy Penn
The UK’s new Chancellor, Rishi Sunak, has abolished VAT on digital editions in his first budget announcement, made today (11 March 2020).
Mr. Sunak said VAT would be scrapped on digital books, newspapers and magazines from 1st December 2020.
He told the Commons: “Digital publications are subject to VAT. That can’t be right. So today I’m abolishing the Reading Tax. From the 1st December, just in time for Christmas, books, newspapers, magazines or academic journals, however they are read, will have no VAT charge whatsoever.”
This comes after News UK recently fought in a tax tribunal for the same VAT abolishment principle.
With digital subscriptions on the rise, this is a good incentive for UK publishers to push digital editions, without the same VAT tariffs physical goods have imposed.