Pictured above: Steven Simmonds
There is much speculation about which goods and services will
attract VAT rises in the emergency budget due on 22nd June.
Chartered Accountants Clement Keys is warning that printed media
is one of the most likely to be changed from zero rated.
"The rise in different forms of electronic media which are not
zero rated will have an influence and prompt the government to
bring print in line with the new media age," says Director of VAT
Services Steven Simmonds.
"The media is undergoing dramatic change at the moment. Those
who choose to buy a printed newspaper or magazine pay no VAT on
that purchase whilst those who download an electronic book or take
their news from a subscription website will have to pay VAT.
"This will not be welcome news for those publishing firms that
are struggling to compete with the digital age. The Times and the
Sunday Times have just introduced a subscription service for their
new online service in an effort to stem the losses incurred from
reduced advertising revenues and falling newspaper sales.
"E-books and the newly launched i-pad are other examples of
different electronic media that are threatening traditional media
forms that currently incur VAT.
"The government will certainly be looking to review the scope of
zero and reduced rated goods and services and with changes to
certain zero rated goods likely to be very unpopular with voters
such as children's clothes then the options are limited."