VAT & PRINTING. When is it chargeable?

Value Added Tax & Printing. In the UK, most printed products are subject to the standard rate of VAT. However, some printed materials may qualify for zero – rating depending on their purpose, design and how they are supplied. HMRC VAT Notice 710/10 explains the rules and the exact VAT treatment depends on the individual printed product. 

VAT rules relating to Print are a little complex at first glance, although the matter becomes clearer when checked against the HMRC guidelines.

Broadly speaking any printed items which are made to be written on have VAT applied at the standard rate. For example stationery, greetings cards, postcards, certificates and vellum Overlays.

If the items are promotional or information based they will often be zero rated for VAT. Examples of these products would be books, brochures and leaflets & flyers. Although leaflets & flyers are one of the tricky items, as they can under certain conditions move from zero rated to standard rated for VAT, currently 20%.

If a leaflet or flyer is designed to be written on, used to obtain a discount for goods or services or for admission purposes it will become standard rated for VAT.

There is also what is known as the 25% rule. If 25% or less of a leaflet, brochure or pamphlet is made up of areas to be completed or parts to be detached and returned, it can generally still qualify for zero rating. If more than 25% is intended for completion or detachment, it will normally become standard rated for VAT.

Based upon the current information from HMRC we have put together a simplified guide version.

As always with VAT, if in doubt it makes sense to check the up to date position on the HMRC website. Or if you have a specific or unusual VAT question relating to your print requirements with Dynamic we will be happy to answer this for you.

Dynamic Print is a specialist Print and Design company in Norwich, serving customers throughout the UK.