Commentary

V6.155 VAT recovery and practical points for printers and publishers

Part V6 Business by business

V6.155 VAT recovery and practical points for printers and publishers

V6.155 VAT recovery and practical points for printers and publishers

VAT recovery

Owing to the predominance of taxable supplies in the publishing sector most publishers will not have a restriction in their entitlement to VAT recovery.

However, they should nonetheless consider the rules around input tax credit described in V4.4. In particular, publishers should be aware of input tax which is excluded from credit by its nature such as VAT on business entertainment expenditure. Input tax excluded from credit is described in V3.440–V3.450.

In addition, certain promotional schemes run by newspaper and magazine publishers could result in challenges to VAT recovery (see below).

Business promotions

Frequently, newspapers and other periodicals will run promotion schemes to increase sales of their publications. The VAT implications can be complex and varied depending on the nature of the scheme.

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