Chancellor Rishi Sunak has announced that VAT on digital publications including books, newspapers, magazines and academic journals is to be abolished from December 1 as part of the 2020 Budget.
The Chancellor told the Commons on Wednesday: “Digital publications are subject to VAT. That can’t be right. So today I’m abolishing the Reading Tax.”
Printed works have never had VAT applied to them, with governments trying to avoid the so-called ‘tax on reading’, however last year the Publishers’ Association argued that those who use digital books were being unfairly targeted by the 20 per cent VAT charge.
Lincolnshire based independent author Peter D. Richardson said that he thinks this change can only be a positive one for the online publishing industry.