Every business has outgoings and overheads that they can prepare for, but when it comes to ordering print products, it can be difficult to know in advance which ones incur VAT.
We understand that many projects need to be costed down to the last penny, every i dotted and t crossed, so in this blog, we’re going to take a quick look at which print products come with VAT and which ones are tax-free.
After all, nobody likes nasty surprises, do they?
What is VAT?
VAT, or value added tax, dates all the way back to 1973 and, after income tax and National Insurance, is the UK government’s third biggest source of revenues.
It is applied to a very wide range of goods and services, and there are three rates: standard at 20%, reduced, which is 5%, and zero.
Which print product is a zero rated item?
The government has defined which products are zero rated, and here’s where it can become a bit of a minefield. Let’s break it down a little, so you know what’s what.
Brochures and pamphlets
Brochures and pamphlets usually consist of several sheets fastened or folded together, containing advertising or political material.
Single sheet brochures and ‘wallet’ type brochures designed with a flap may be zero-rated provided they:
convey information
contain a substantial amount of text, with some indication of contents or of the issuing organisation
are not primarily designed to hold other items
are supplied complete
Leaflets
The government defines leaflets as normally:
consisting of a single sheet of paper no bigger than international standard A4 in size
intended to be held in the hand for reading
conveying information
are complete and not a part work
are supplied in sufficient quantity (at least 50 copies) to permit general distribution
are printed on limp paper
will either be designed to be read a few times and then thrown away
Do be aware that if your leaflet features an order form, that does make it liable to VAT, so it’s worth bearing that in mind when designing your products.
Zero rated products
Books
Booklets
Brochures
Catalogues
Directories
Flyers/Leaflets
Journals
Magazines
Manuals
Maps
Newsletters
Newspapers
Pamphlets
Price lists
Sheet Music
Timetables
VATable paper products
Acceptance cards
Banners
Business cards
Calendars
Certificates
Compliment slips
Coupons
Delivery notes
Diaries
Envelopes
Folders
Forms
Invitations
Invoices
Labels
Letterheads
Order Forms
Postcards
Posters
Questionnaires
Roller Banners
Stationery
Stickers
Tickets
Transparencies
Find out more about VAT
You can trawl through the government’s website here if you want to know more about which printed products are rated for VAT, or you can talk to an actual human being at dxp print solutions.
Our friendly and professional customer service team will explain clearly and concisely what VAT costs you can expect to pay for each project, so you know upfront what’s involved. No nasty surprises, remember?
You can email us at info@dxpprint.com, call 01268 732 109, or drop us a line on our contact form.