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Ah yes, the dreaded VAT man. Vocal enough
when it comes to giving money to charitable causes (and rightly so, three
cheers!), but strangely quiet when it comes to VAT on your beloved corporate
literature.
Now most companies these days are VAT registered
and can claim back the VAT they 'donate' when paying for design and print
work. However, some are not VAT registered and others may not be happy
waiting a year (or more) until they see their contributions returned.
For that matter, some designers and printers may not be too enthusiastic
about acting as an unpaid tax collector when it isn't strictly necessary.
So, here we present a guide to the types
of work which are VAT Zero rated for design and print costs. Please note
- Leaflets have special rules.
| Remember,
this list is not definitive. It is only intended as a guide. If in
any doubt contact your local VAT office. The last thing anybody wants
is a surprise audit. |
| Items
for which you MUST pay VAT (17.5%) |
Items
for which you DON'T pay VAT |
- Acceptance
Card
- Amendment
Slips
- Announcement
Cards
- Appointment
Cards
- Business
Cards
- Calendars
- Certificates
- Cloakroom
Tickets
- Compliment
Slips
- Correspondence
Cards
- Coupons
- Delivery
Notes
- Diaries (unused)
- Draw Tickets
- Envelopes
- Folders
- Forms
- Greetings
Cards
- Index Cards
- Invitation
Cards
- Invoices
- Labels
- Letterheads
- Lottery Tickets
- Memo Pads
- Menu Cards
(with space for completion)
- Order Books
- Parts of
Books
- Post Cards
- Posters
- Questionnaires
- Receipt Books
- Record Books
- Record Labels
- Record Sleeves
- Reply Paid
Coupons
- Stationery
- Stickers
- Sweepstake
Tickets
- Tags
- Tickets
- Transparencies
- Visiting
Card
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- Books
- Booklets
- Brochures
- Bulletins
- Catalogues
- Circulars
- Directories
- Election
Addresses
- Fixture
Lists
- Hand
Bills
- Holiday
and Tourist Guides
- Instruction
Manuals
- Journals
- Leaflets
(see note below)
- Magazines
- Manuals
- Maps
- Menu
Cards (fully printed)
- Music
- Newspapers
- Pamphlets
- Picture
Books
- Price
Lists (fully printed)
- Recipe
Books
- Sports
Programmes
- Time
Tables
- Wine
Lists (fully printed)
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Leaflets
In order for
a leaflet to be Zero Rated it must:
- Consist of
a single sheet of paper not greater than international standard
A4 in size (larger publications up to A2 size can be zero rated
provided they are printed on both sides, folded down to A4 size
or smaller and meet the other conditions)
- Be primarily
intended to be held in the hand for reading by individuals (rather
than for hanging up for general display)
- Convey information
- Be complete
in itself (and not a part work)
- Contain a
significant proportion of text
- Be printed
on a stock which weighs no more than 230 gsm (grammes per square
metre)
Printed sheets
where more than 25% of the total printed area is for completion
are standard-rated. Where the sheet has a portion to be detached
and returned, the portion to be detached must be less than 25% of
the whole leaflet for the leaflet to be zero-rated. Whatever the
area for completion, a sheet which is to be returned whole after
completion is always standard rated.
Many
thanks go to City Image Print in Middlesbrough for passing this
information on to us.
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Page
URL: http://www.graphicdesign.co.uk/vatbuster/
Date created: 15th July 1998
Webmaster: Bruce Wilkie
Inquiries: studio@adscreative.com
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