Zero VAT Rate E-publications 2020-02-11
2020-02-11
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
▸
Context
The potential merits of introducing a zero-rate VAT for e-publications are being assessed by the Department.
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.
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.
▸
Assessment & feedback
The specific merits and potential impact of introducing a zero-rate VAT for e-publications were not fully addressed with concrete facts or commitments.
Entertainment
Commercial Decision
Response accuracy
Q2
Partial Answer
▸
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.
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?
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.
▸
Assessment & feedback
Specific policy change or commitment regarding VAT on online children's books and academic journals was not provided.
Consideration
Keeping All Taxes Under Review
Response accuracy
Q3
Partial Answer
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?
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.
▸
Assessment & feedback
The specific issue about VAT reduction post-Brexit versus the SNP's stance was not addressed directly.
Parallel Issue
Sanitary Products
Response accuracy