I hope not to complicate matters further by delving into the murky depths
of VAT regulation in the EU, but from memory (I gave a presentation on VAT
for NAG some years ago), the regulation as to the rate of VAT to be charged
is as follows :
For most of the supplies between VAT registered traders in different member
states, VAT is not charged on despatched, but is charged at the rate of the
country to which goods are delivered (is the provision of e-journal access
"movement of goods" and if the "goods" originate in the UK, i.e. from a UK
publisher, is there "movement" between member states?!).
For those not registered for VAT, the rate charged would be applicable to
the country of supply.
My undertanding of the above is that if a customer in the UK informs the
supplier elsewhere in the EC of their VAT number, the rate charged would be
that in the UK. This regulation can usefully be used by UK institutions
where other EC member states charge VAT on books and periodicals (including
Ireland).
I hope this is useful for clarification and has not opened up a hornet's nest!
Keith Renwick,
Sales Manager,
Everetts.
At 04:27 PM 9/17/01 +0100, you wrote:
>Caroline is right about the electronic 'part' of a sub attracting VAT.
>
>By my calculations CUP seem to be charging VAT on about £93 or 35% of the
>print and electronic price. The electronic-only price of £298.42 seems to
>be £253.97 + VAT.
>
>Two other points:
>
>1 it has been my understanding that, for invoices originating outside
>the EU (ie VAT area) for VAT-able services, institutions have to pay VAT by
>the reverse charge mechanism. There now appears to be a complication (VAT
>is such a simple matter) in the form of the AOL case; see
>http://www.guardian.co.uk/Archive/Article/0,4273,4230942,00.html
><http://www.guardian.co.uk/Archive/Article/0,4273,4230942,00.html>
>2 I recently received a (sterling) invoice for Navigator from
>Swet'wells in Holland with Dutch VAT @19%. It is 'company policy' to bill
>Navigator from there. Being unable to recoup VAT, I am paying an extra 1.5%
>as a result.
>
>D
>*********************************************
>David Ball
>Associate Head of Academic Services
>(University Librarian)
>Bournemouth University
>Fern Barrow
>Poole, Dorset BH12 5BB
>UK
>Tel.: +44 (0)1202-595044
>Fax.: +44 (0)1202-595475
>*********************************************
>
>
>
> -----Original Message-----
> From: Caroline Moss-Gibbons
>[SMTP:[log in to unmask]]
> Sent: 17 September 2001 14:46
> To: [log in to unmask]
> Subject: Re: CUP's VAT on journals
>
> Dear All,
> My understanding of the VAT position is that whilst print is
>zero-rated, any
> electronic delivery of the content does indeed attract VAT. Thus a
>'print +
> electronic' subscription would only attract VAT on a percentage of
>the total
> price (the publisher would decide how much of it was 'electronic'
>and how
> much of the price was for 'print', eg a 20:80 split in favour of
>print). An
> 'electronic only' sub would attract VAT on the entire sum, as none
>of the
> material would be zero-rated.
>
> The rate of VAT will depend on the country in which the journal is
> published. A UK publisher will have to impose 17.5% on the
>electronic
> element of a subscription, but a US publisher would not have to
>charge any.
> It is Customs & Excise who decide if something attracts VAT or not,
>not the
> publisher/supplier.
>
> Perhaps the Association of Subscription Agents (ASA) or the
>Publishers
> Association (PA) could bring us all up to date on the present
>situation, or
> at least correct any misunderstanding in the above?
>
> Best regards,
> Caroline Moss-Gibbons
> __________________________________________________
>
> Caroline Moss-Gibbons
> Manager - Library and Information Services
> Royal College of Physicians
> 11 St Andrews Place
> Regent's Park
> London
> NW1 4LE
>
> email: [log in to unmask]
> Tel: 020 7935 1174 x315
> Fax: 020 7487 5218
> http://www.rcplondon.ac.uk
>
> Registered Charity Number 210508
>
> This email and any files transmitted with it are confidential and
>intended
> solely for the use of the individual or entity to whom they are
>addressed.
> If you receive this message in error, please notify
> [log in to unmask]
> _________________________________________
>
>
> > -----Original Message-----
> > From: Jonathan McAslan [SMTP:[log in to unmask]]
> > Sent: 17 September 2001 12:37
> > To: [log in to unmask]
> > Subject: CUP's VAT on journals
> >
> > We have just recently discovered that Cambridge University Press
>will be
> > charging VAT on all their journals that have electronic access. A
>rouge
> > invoice came to us rather than our agents and on it it says: "As
>advised
> > last year, the electronic part of your subscription (where
>available) now
> > attracts VAT at the appropriate rate." I asked CUP when and how
> > subscribers
> > had been advised. Their response was that it was stated on last
>year's
> > invoices. However, like most institutions we use agents and thus
>do not
> > see
> > publisher's invoices. It seems odd that a publisher which sends
>out
> > letters
> > about new journals and services seems to have decided on a more
>subtle
> > route
> > to inform us of this major change. Has anyone else been iformed,
>formally,
> > by CUP, through another route?
> > As an example I asked CUP about the costs of Genetical Research:
> > 2001 Print & Electronic = £240
> > 2002 Print & Electronic = £268 PLUS VAT on electronic "part" =
>£284.42
> > 2002 Electronic Only = £298.42
> > There is no "print only" option. That means a price increase (if
>my maths
> > is
> > right) of about 18.5% for 2002.
> >
> > CUP do not seem to be alone on this as Portland Press are also
>doing it.
> > Does anyone know of any other publishers who are doing this (I've
>checked
> > with Taylor & Francis and they are not)?
> >
> > Many thanks
> >
> > Jonathan McAslan
> > Serials Manager
> > University of Aberdeen
> > Tel: 01224 272029
> > Fax: 01224 487048
> > email: [log in to unmask]
>
>
|