18 May 2020 
Andrea Marshall, Tax Specialist
Update on zero-rating of e-publications and analysis needed
Andrea been in contact with librarians over the past few days and one of the main suppliers for the sector.
It is clear that not all of the e-resources that universities subscribe to, will qualify for zero-rating post 1 May 2020 and it is important that for budgeting purposes, that there is an awareness of where VAT may or will still be incurred, especially in light of News Corp claims and supplies that relate to pre and post 1 May 2020.
Following discussions with library staff, the following categories of e-resources have been identified. Unfortunately the VAT liability of some categorieus is not clear:
Category
| VAT liability post 1 May 2020
|
1. E-book or e-journal subscriptions | Zero-rated |
2. E-book or e-journal subscriptions with other elements (e.g. an audio-book options) | Not clear – is there an argument that the audio book is ancillary to the provision of the e-book or e-journal? Supplier would need to engage with this |
3. Databases that only offer e-book or e-journals (we understand that sometimes subscriptions are packaged as a “database” but in reality they are e-book and/or e-journal subscriptions) | Zero-rated |
4. Databases where a range of materials are provided (e.g. journal’s, articles from journals, reports, images, extracts from encyclopaedias, videos, maps, etc.) | Standard-rated – but is there the option to split content or apportion? Supplier would need to engage with this |
5. Databases that provide data analytics and a range of materials – mainly in the financial area | Standard-rated |
Recommendation
We are aware that some suppliers are currently reviewing their databases to establish if they are eligible for zero-rating.
In the meantime, we suggest that universities analyse their e-resource spend into these categories and budget for VAT on options 2 and 4 (until more information is available) and on category 5, (because this is unlikely to change) .
