THE PDI GUIDE TO VAT ON PRINT

Firstly, lets deal with the small print:

IMPORTANT NOTE:

This guide is written based on the experience of PDI personnel and information provided by HM Customs and Excise. It is written in good faith as a working guide to the rules of VAT and how they apply to printed items. However, this is a complex area and PDI would state that all comments are subject to sight of the individual item.

The fact that a disclaimer has to be given is the first indication of the complexity of this area of tax, although the basic rules are relatively straight-forward. PDI suggests that the client seeks advice directly from HM Customs

SO WHAT IS SO STRANGE ABOUT VAT AND PRINT?

When VAT was first introduced it was realised that a tax on books i.e. learning, was inappropriate and so books were deemed to be Zero Rated.

Please note throughout this guide we are not saying there is no VAT on certain printed items but rather they are Zero Rated. Sale sand purchases still need to appear on the VAT return but with a Zero Rating.

Of course if books were to be Zero Rated – what of other printed items? Magazines? Training Manuals? Brochures?

The rules developed over the years look complex and for most companies who are registered for VAT and therefore able to reclaim the tax this may all seem irrelevant but for charities and businesses not registered then the rules are important.

WHICH ITEMS ARE ZERO-RATED FOR VAT AND WHICH ARE STANDARD RATED?

HM Customs refer to Group 3 items as being zero-rated for VAT and Appendix A to this briefing gives the status of some common items. It is worth stressing that the exempt items are printed to paper or card, (although Braille would count as printing) but goods which are photocopied may in some cases qualify. Goods in other formats such as a CD or audio file are standard rated. We have given a detailed explanation of meaning of the common direct mail items below:

Training Materials

Training manuals, whether bound by wire or perfect bound are Zero Rated for VAT. As are all Text Books.

Envelopes

All stationery items, including envelopes are standard rated.

Letters

Individual manuscript or typed letters are standard rated. However, if an individuals name, address, reference number and signature (or any combination of these) is added to zero rated stock then the items remains zero rated. For example if the only personalisation on a leaflet is the name and address then the leaflet remains zero rated and is not considered a letter.

Leaflets/Flyers

A leaflet is ZERO RATED if the majority of the following apply:

The paper grammage does not exceed 180gsm
The leaflet consist of a single sheet of paper not greater than A4 (larger publications can be zero rated if they are printed both sides and folded down to A4 or smaller and meet the other conditions)
Are held in the hand for reading and not used for hanging or general display
Convey information
Be complete in themselves
Contain a proportion of text
Be supplied in more than 50 copies for general distribution

A leaflet is STANDARD RATED if 25% or more of the total area consists of:

Areas that are blank and available for completion
Portions are to be detached and returned
A combination of a blank portion for completion and a portion to be detached and returned

Brochures/Catalogues/Pamphlets

These consist of several sheets of reading matter that are fastened or folded together, that are not necessarily bound in a cover. They normally contain text or illustrations, but may also contain advertising material.

Brochures and pamphlets are ZERO RATED provided they:

Convey information; and
Contain a substantial amount of ext, with some indication of contents or the issuing organisation; and
Are not primarily designed to hold other items; and
Are supplied complete.

Brochures and pamphlets are STANDARD RATE if 25% or more consists of:

Areas that are blank and available for completion
Portions are to be detached and returned
A combination of a blank portion for completion and a portion to be detached and returned.

Magazines

Journals and periodicals are ZERO RATED, however if the main purpose is to promote their ‘own’ product then they are not considered to be magazines even if they are produced on a regular basis. A ‘magazine’ can be ZERO RATED if it can be classed as a brochure – see above.

Questionnaires/Application Forms

The physical characteristics are important. In general forms and questionnaires are STANDARD RATED. However, with reference to leaflets and fliers, brochures and pamphlets, if the areas that are blank and available for completion and/or the portion to be completed and returned is 25% or below then the leaflet/brochure/pamphlet is ZERO RATED

Postcards

Whether a postcard is completed or not it is STANDARD RATE

Vouchers and Coupons

Vouchers and coupons are STANDARD RATE

Promotional gifts and samples

A promotional gift or sample is usually deemed to be STANDARD RATED. This includes notebooks, Diaries and Calendars

SO, WHO MAY WISH THEIR PRINT TO BE TAX EXEMPT?

Certain businesses have exempt liabilities. Because they do not charge VAT on their goods they do not have a VAT registration number and are unable to claim VAT. These types of businesses can benefit from printed items being tax exempt.

Businesses with an interest would include: Land

Insurance

Gambling and Betting

Burials and Cremation

Finance

Charities

USEFUL CONTACTS

HM Customs will answer questions from your local tax office or via their web site at

www.hmrc.gov.uk

APPENDIX A

Liability of Some Common Items

Item	Liability
Acceptance cards	Standard-rated
Account Books	Standard-rated
Accounts (fully printed)	Zero-rated
Address books	Standard-rated
Advertising leaflets	Zero-rated
Agendas (fully printed)	Zero-rated
Albums	Standard-rated
Almanacs	Zero-rated
Amendment slips	Standard-rated
Amendments (loose-leaf)	Zero-rated
Announcement cards	Standard-rated
Annuals	Zero-rated
Antique books	Zero-rated
Antique maps	Zero-rated
Appointment cards	Standard-rated
Articles of association (complete in booklet form)	Zero-rated
Astronomical charts	Zero-rated
Atlases	Zero-rated
Autograph albums (uncompleted)	Standard-rated
Autograph books (completed)	Zero-rated
Badges	Standard-rated
Bags, paper	Standard-rated
Ballot papers	Standard-rated
Bankers' drafts	Standard-rated
Bibliographies	Zero-rated
Billheads	Standard-rated
Bills of lading	Standard-rated
Bills of quantity (blank)	Standard-rated
Bills of quantity (completed)	Zero-rated
Binders	Standard-rated
Bingo cards	Standard-rated
Biorhythm charts	Standard-rated
Blotters	Standard-rated
Book covers	Standard-rated
Book marks	Standard-rated
Book tokens	Standard-rated
Booklets	Zero-rated
Bookmakers' tickets	Standard-rated
Books	Zero-rated
Brochures	Zero-rated
Bulletins	Zero-rated
Business cards	Standard-rated
Calendars	Standard-rated
Catalogues	Zero-rated
Certificates	Standard-rated
Charts (geographical or topographical)	Zero-rated
Cheques and cheque books	Standard-rated
Cigarette cards	Standard-rated
Circulars	Zero-rated
Cloakroom tickets	Standard-rated
Colour cards	Standard-rated
Colouring books (children's)	Zero-rated
Comics	Zero-rated
Company accounts and reports	Zero-rated
Compliment slips	Standard-rated
Copy books	Standard-rated
Correspondence cards	Standard-rated
Coupon books	Standard-rated
Coupons	Standard-rated
Credit cards	Standard-rated
Crossword books	Zero-rated
Delivery notes	Standard-rated
Diaries (completed)	Zero-rated
Diaries (unused)	Standard-rated
Dictionaries	Zero-rated
Directories (completed)	Zero-rated
Dividend warrants	Standard-rated
Dressmaking patterns	Standard-rated
Election addresses	Zero-rated
Encyclopaedias	Zero-rated
Engineers' plans	Standard-rated
Envelopes	Standard-rated
Exercise books	Standard-rated
Fashion drawings	Standard-rated
Flash cards	Standard-rated
Folders	Standard-rated
Football pool coupons	Standard-rated
Football programmes	Zero-rated
Form letters	Standard-rated
Forms	Standard-rated
Framed decorative maps	Standard-rated
Games	Standard-rated
Geological maps	Zero-rated
Globes	Standard-rated
Graph paper	Standard-rated
Greetings cards	Standard-rated
Handbills	Zero-rated
Holiday and tourist guides	Zero-rated
Hydrographical charts	Zero-rated
Hymn books	Zero-rated
Index cards	Standard-rated
Inlay cards for cassette, CD or video	Standard-rated
Instruction manuals	Zero-rated
Insurance cover notes	Standard-rated
Invitation cards	Standard-rated
Invoices	Standard-rated
Journals	Zero-rated
Labels	Standard-rated
Leaflets	Zero-rated
Letter headings	Standard-rated
Letters (handwritten)	Standard-rated
Log books (blank)	Standard-rated
Loose leaf books	Zero-rated
Lottery tickets and cards	Standard-rated
Magazines	Zero-rated
Mail order catalogues	Zero-rated
Manuals	Zero-rated
Manuscript paper	Standard-rated
Manuscripts	Standard-rated
Maps	Zero-rated
Medical records	Standard-rated
Membership cards	Standard-rated
Memo pads	Standard-rated
Memoranda of association (completed in booklet form)	Zero-rated
Memorial cards	Standard-rated
Menu cards	Standard-rated
Microfiche	Standard-rated
Microfilm	Standard-rated
Microform copies	Standard-rated
Missals	Zero-rated
Monographs	Zero-rated
Music	Zero-rated
Music rolls	Standard-rated
Music scores	Zero-rated
Newspapers	Zero-rated
Note books, pads and paper	Standard-rated
Order books and forms	Standard-rated
Orders of Service	Zero-rated
Painting books (children's)	Zero-rated
Pamphlets	Zero-rated
Paper, unprinted	Standard-rated
Parts of books	Standard-rated
Pattern cards	Standard-rated
Periodicals	Zero-rated
Photograph albums	Standard-rated
Photographs	Standard-rated
Picture books	Zero-rated
Plans	Standard-rated
Playing cards	Standard-rated
Poll cards	Standard-rated
Pools coupons	Standard-rated
Postcards (whether completed or not)	Standard-rated
Poster magazines	Zero-rated
Posters	Standard-rated
Prayer books	Zero-rated
Price cards and tags	Standard-rated
Price lists (fully printed leaflets or brochures)	Zero-rated
Printed pictures	Standard-rated
Programmes	Zero-rated
Questionnaires	Standard-rated
Rag books (children's)	Zero-rated
Receipt books and forms	Standard-rated
Recipe books	Zero-rated
Record books	Standard-rated
Record labels	Standard-rated
Record sleeves	Standard-rated
Registers	Standard-rated
Rent books	Standard-rated
Reply-paid coupons and envelopes	Standard-rated
Reproductions of paintings	Standard-rated
Road maps	Zero-rated
Score cards	Standard-rated
Scrap books (blank)	Standard-rated
Scrap books (completed)	Zero-rated
Scrolls (hand-written)	Standard-rated
Seals	Standard-rated
Shade cards (unless they contain substantial printed text)	Standard-rated
Share certificates	Standard-rated
Ships' logs (completed)	Zero-rated
Sports programmes	Zero-rated
Staff journals	Zero-rated
Stamp albums (whether completed or not)	Standard-rated
Stationery	Standard-rated
Stationery books	Standard-rated
Stickers	Standard-rated
Swatch books	Standard-rated
Swatch cards	Standard-rated
Sweepstake tickets	Standard-rated
Tags	Standard-rated
Temperature charts	Standard-rated
Text books	Zero-rated
Theses	Zero-rated
Tickets	Standard-rated
Time cards and sheets	Standard-rated
Timetables (in book or leaflet form)	Zero-rated
Tokens	Standard-rated
Topographical plans	Zero-rated
Toys	Standard-rated
Tracts	Zero-rated
Trade catalogues	Zero-rated
Trade directories	Zero-rated
Transcripts	Standard-rated
Transfers	Standard-rated
Transparencies	Standard-rated
Travel brochures	Zero-rated
Visiting cards	Standard-rated
Vouchers	Standard-rated
Wall charts	Standard-rated
Waste paper	Standard-rated
Wills	Standard-rated
Winding cards	Standard-rated
Wrapping paper	Standard-rated
Wreath cards	Standard-rated

Published at 21 April 2025 By: David Platt