I bought a book at a High Street discount retailer. The only special thing about the book is that it has a holographic printed cover, but otherwise it's a normal book. According to the receipt, the VAT content that was included in the price and is at 'Rate M' which is 7.20%. The item was 5.00, which includes 34p VAT (which I make to be 6.8%).
According to the HMRC guidance on what is and isn't a book, things can be
either zero-rated (bona fide books) or standard-rated (lots of things that
apparently aren't books, like address books, biorhythm charts, rent books,
temperature charts and wills). But I've never heard of a special rate of
VAT of 7.2%.
I don't think the cover is being accounted for separately to the book,
because HMRC say:
"The standard-rated item may be ancillary to, or an integral part of, the
supply of zero-rated printed matter. The resulting supply is a single,
zero-rated supply. (However, covers, cases and similar articles not
separately accounted for are already zero-rated under Item 6 of Group 3,
Schedule 8 of the VAT Act 1994.)"
Anyone have any ideas what's going on here?
- posted 8 years ago