Dear All,
This message from the e-collections list is relevant to the recent
message from Barbara Houston about Cambridge University Press's charge
of VAT on print+online subscriptions.
According to the advice below, as the electronic element is less than
50%, VAT need not be charged.
Perhaps Everetts and the other subscription agents could pass this
advice on to CUP.
David Welding
Technical Services Librarian
University of Leicester
-----Original Message-----
From: Alicia L Wise [mailto:[log in to unmask]]
Sent: 07 November 2001 16:56
To: [log in to unmask]
Subject: VAT and Electronic subscriptions
For information...
>On Tue, 06 Nov 2001 11:26:45 +0000 Keith Renwick
><[log in to unmask]> wrote:
>
>> Dear Alicia (and Judy),
>>
>> Richard Savory at Everetts picked up your e-mail and
asked me to reply. You may both be interested to read an
article written by Geofffrey Gilbert, Paul Harwood and
myself to be published in the next issue of Serials (due in
about two weeks) on this very subject. You are right that
there is a lot of confusion about this, but Customs and
Excise produce two relevant documents, VAT Notice 701/11
Printed and similar matter and VAT Information Sheet 03/01
VAT : Digitised publications. The former defines the
"package test" which states that if the package contains
more zero-rated items than standard-rated items then the
whole package can be zero-rated. Therefore, if electronic
is supplied free with print or is less than the value of the
printed part, then the whole subscription can be
zero-rated. However, problems arise if publishers make the
electronic only available for more than half the cost of
the printed subscription, then Customs and Excise
could argue that the electronic forms the major part and
VAT should be charged on the whole package, even the
printed part.
We are hoping our article in Serials will go some way to
clarifying the situation for both publishers and librarians.
Hope this is useful.
Keith.
>> Keith D. Renwick,
>> Sales Manager, Everetts,
>> Tel.0161 865 1946.
>> Fax : 0161 865 2008.
>> Mobile 07887 933226
>> E-Mail : [log in to unmask]
>
>***********************************
>Dr. Alicia Wise
>Assistant DNER Director
>Joint Information Systems Committee
>138-142 Strand
>London WC2R 1HH
>(020) 7848 2556 office
>(020) 7848 2939 fax
>[log in to unmask]
>***********************************
>
>
Keith D. Renwick,
Sales Manager, Everetts,
Tel.0161 865 1946.
Fax : 0161 865 2008.
Mobile 07887 933226
E-Mail : [log in to unmask]
--- End Forwarded Message ---
***********************************
Dr. Alicia Wise
Assistant DNER Director
Joint Information Systems Committee
138-142 Strand
London WC2R 1HH
(020) 7848 2556 office
(020) 7848 2939 fax
[log in to unmask]
***********************************
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