Do I have to pay VAT on my printing?
We at Vision Design & Print will help you understand how VAT works with printing, so you are always on top. There are many items that do not require you to pay VAT, but there is a few you need to keep your eye out for.
The what and why of VAT
VAT is a levy on sales used in the EU on the basis of value added for goods and services. It was founded in 1973, following the entry of Britain into the European Economic Community. This stands for Value Added Tax which has payroll tax which social insurance as the third-largest source of government revenues.
This is a general tax applicable to all commercial activities which involve the production and distribution of products, including printing, and is charged to the consumer as a percentage of the price.
Once the EU was created, various methods of taxation were used by the original 6 countries.The VAT tax was implemented to establish a one valuation system across the EU countries, which included a fair, impartial and clear turnover tax structure that operated across the board.
Now, VAT in printing
Although VAT is included in most prices on our website, it is important to know which print items are VATable and which are zero-rated. The below table shows which printed items are VAT rated and which are VAT free. The standard rate of VAT is 20%.
|Colouring Books (Children’s)||Coupons|
|Orders of Service||Laminated Products|
|Price Lists (Without an Order Form)||Manuscripts|
|Sports Programmes||Order Books or Forms|
|Price Cards and Tags|
*Please note there are certain criterion a flyer or leaflet must meet for the product to be zero-rated. There must be a significant amount of text on a minimum of one side of the leaflet to ensure it is being printed as something to be read hand-held, as opposed to posting on a wall. As well as this it must be no larger than A4 in size and printed on a paper no thicker than 230gsm.
Are There Any Exceptions?
Some printed products in the zero-rated list may still be applicable for VAT if they have or will be used for any of the following:
1. Voucher of Admissions
VAT is chargeable if your print product, e.g. a flyer or leaflet, is used as admission to premises, for example using the words ‘free admission with this leaflet’.
2. Discount Usage
VAT is chargeable if your print product is used to obtain a discount on goods or services, for example using the words ‘25% off with this flyer’.
3. Writable Area
VAT is chargeable if your printed product has an area designed to be written on. For example, invitations, certificates, postcards or forms. To be charged, this area must cover at least 25% of the artwork.
4. Writable Booklets
All books and booklets are exempt from VAT charges unless they are designed and printed to be written in, for example diaries, calendars and record books.
What Happens if I Need to Pay VAT for Printing?
If you are printing something in the exceptions list above with Vision Design & Print, our team checks every single piece of artwork for a number of different things, and VAT is one of these checks. If you are required to pay VAT, we’ll be in touch to let you know how much you need to pay and how to do this, so there’s no need to worry!
If you have any more questions on VAT on printing, please get in touch with our team and we’ll be happy to help.