The Supreme Court has confirmed that, during the historical period in question, VAT zero-rating applied only to the physical editions of newspapers and did not extend to the digital versions.
In News Corp UK & Ireland Ltd v HMRC [2023] UKSC 7, the Supreme Court confirmed that, during the relevant period (30 August 2010 to 4 December 2016), digital editions did not fall within the scope of zero-rating for newspapers (under VATA 1994 Sch 8 Group 3 Item 2). Zero-rating would only apply to the physical, printed versions. The decision focused on the meaning of ‘newspapers’, with the Supreme Court deciding on a narrow interpretation according to principles of EU law and taking account of the ‘standstill’ provision in the Principal VAT Directive (meaning the ‘exemption’ would not evolve over time).
The decision does not affect current VAT law in the UK. From 1 May 2020, a new Item 7 inserted into Sch 8 Group 3 extended zero-rating to books and newspapers supplied electronically, subject to certain conditions. (See case report, page 6.)
The Supreme Court has confirmed that, during the historical period in question, VAT zero-rating applied only to the physical editions of newspapers and did not extend to the digital versions.
In News Corp UK & Ireland Ltd v HMRC [2023] UKSC 7, the Supreme Court confirmed that, during the relevant period (30 August 2010 to 4 December 2016), digital editions did not fall within the scope of zero-rating for newspapers (under VATA 1994 Sch 8 Group 3 Item 2). Zero-rating would only apply to the physical, printed versions. The decision focused on the meaning of ‘newspapers’, with the Supreme Court deciding on a narrow interpretation according to principles of EU law and taking account of the ‘standstill’ provision in the Principal VAT Directive (meaning the ‘exemption’ would not evolve over time).
The decision does not affect current VAT law in the UK. From 1 May 2020, a new Item 7 inserted into Sch 8 Group 3 extended zero-rating to books and newspapers supplied electronically, subject to certain conditions. (See case report, page 6.)
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")