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VAT-free printed items

07 Dec The Panda Press guide to VAT on printed materials

Posted at 09:00h in Advice, Printing by
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VAT on printed materials

Although VAT is charged on some printed items, other materials are exempt. Confused? We understand that HMRC rules can be a bit of a minefield so with this in mind we’ve put together a general guide to help you.

 

Zero rate v standard rate

As a very rough rule, items that you write on such as stationery, calendars, forms, compliments slips and greetings cards will all carry a standard rate of VAT. Products such as tickets or coupons are also subject to the charge.

However, printed materials which are for information and promotional purposes (more about this in a moment) are zero-rated – which means you won’t have to pay VAT. These include leaflets, brochures and books.

For a quick overview of what is exempt and what is not, you can take a look at our handy comparison table

How can I make sure my leaflet is VAT exempt?

To qualify as a zero-rated product, a leaflet must be of a certain size (generally A4 but you can go up to A2 if it can be folded down and is printed on both sides) and be intended for a certain purpose.

However, it may not be exempt if:

  • It will be used to gain admission to an event (it is then classed as a ticket)
  • It is used to obtain a discount (it then becomes a voucher)
  • More than 25% of the leaflet has an area which can be written on by the customer, such as a return slip

Although the rules may seem limiting (and slightly arbitrary) with a dash of creativity there is a lot that you can do.

You can still devote a quarter of your printed content to a ‘Request more Information’ form, for example, and your leaflet may still advertise an event or a discount because this clearly meets the criteria for information and promotional purposes. What you can’t do if you wish to remain exempt is to use your leaflet in a transaction.

Any questions?

Of course if you are still confused, you can always give us a call on 01785 815110 and we will be happy to answer any queries you may have.

You can also take a look at the full HMRC guidelines by clicking here