Commons Sense

House of Commons · Ministers' Questions

Zero VAT Rate: E-publications

Tuesday 11 February 2020 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Martyn Day inquired about the potential commercial impact of reducing VAT for e-publications and whether it would be extended to online children's books and academic journals.
  • The Minister responded that while there are benefits to a zero-rate VAT, the Government must consider what is right overall and continues to review taxes.
  • Michael Fabricant pointed out the irony in the SNP's desire to remain in the EU while advocating for reduced VAT rates post-Brexit.

Topics (select to filter)

Questions & Answers

Q1 Martyn Day SNP
Taxation
Context

The potential merits of introducing a zero-rate VAT for e-publications are being assessed by the Department.

Question

What recent assessment has his Department made about the potential benefits of having a zero-rate of VAT for e-publications? The questioner is concerned with whether there could be any commercial impact from reducing VAT and if it would make sense to extend this benefit given that pricing decisions are often based on other factors.

Answer from Jesse Norman

The Minister thanked the hon. Gentleman for his question and noted that while Speaker Bercow's book is an online bestseller in a niche category, it is not clear if reducing VAT would affect pricing decisions since these are largely commercial. The Minister concluded that changing tax rates might not necessarily influence how e-books are priced.

Partly answered

Not addressed: The specific merits and potential impact of introducing a zero-rate VAT for e-publications were not fully addressed with concrete facts or commitments.

How: Entertainment, Commercial Decision

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Q2 Martyn Day SNP
Taxation Scotland
Context

Scottish National party Members are disappointed with the previous Government's refusal to remove VAT from electronic publications. The question is asked in anticipation of an upcoming budget.

Question

The Scottish National party is very disappointed that the last Government refused their demands to eliminate VAT on e-publications, so will the Minister consider a policy change regarding online children's books and academic journals becoming more affordable before the Budget?

Answer from Jesse Norman

The hon. Gentleman is correct that there are benefits associated with extending a zero-rate VAT, but the task of the Government is to determine what is right all things considered. The Minister noted that they have responded to parts of the Cairncross review and continue to review taxes in preparation for the budget.

Partly answered

Not addressed: Specific policy change or commitment regarding VAT on online children's books and academic journals was not provided.

How: Consideration, Keeping All Taxes Under Review

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Q3 Michael Fabricant Con
Taxation Brexit

Question

The SNP Member for Linlithgow and East Falkirk argued that reducing VAT to zero could be possible through Brexit. Does the Minister find it ironic that while we might reduce VAT after leaving the EU, the SNP wants to remain in the EU, thus potentially not being able to lower VAT?

Answer from Jesse Norman

The Minister found the point telling and highlighted that we will be able to act on reducing VAT for sanitary products after leaving the EU, drawing a parallel with the SNP's desire.

Not addressed: The specific issue about VAT reduction post-Brexit versus the SNP's stance was not addressed directly.

How: Parallel Issue, Sanitary Products

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