There are 2 questions:
1. 'Claiming back' VAT on electronic publications.
This can be done if the library or institution is VAT registered. If you
already lose the VAT on other purchases (stationery, equipment etc.) then
you can do so on electronic publications.
However most universities, as educational institutions, are outside the VAT
system altogether - and hence pay VAT as does the individual. Some
universities have separate VAT-registered companies and activities (eg for
new builds); some have deals with Customs and Excise to reclaim a portion of
VAT equivalent to the proportion of their non-educational activities. I am
told however that additional corporation tax paid as a non-educational
institution cancels out any reclaimed VAT.
University finance officers will advise on individual positions.
2. University subsidies for additional VAT
This is up to the individual institution. Some librarians may have
negotiated increases in their budgets to allow for additional VAT payable; I
have not heard of any. Generally the serials budget just buys less - a
double hit as publishers always increase prices above RPI inflation.
Perhaps Sage would like to lead the way in discounting their prices to help
univeristies buy the same number of journals each year?
There is a third question - VAT on services received from outside the EU.
It is my understanding that, even if an invoice for an electronic service
originates outside the EU (eg the USA), institutions receiving the service
in the UK still have to pay VAT. The mechanism for doing this is I think
the 'reverse charge'. Individual finance officers will of course advise.
D
> ----------
> From:
> [log in to unmask][SMTP:[log in to unmask]]
> Reply To: [log in to unmask]
> Sent: 14 June 2000 14:41
> To: [log in to unmask]; [log in to unmask]
> Subject: RE: E-journals and VAT
>
> On the publisher side, we are also interested in this question. We are
> concerned to know whether the obligatory VAT on ejournals/eproducts is
> being
> required by university finance depts to come out of the already
> constrained
> serials budgets, whether it is regarded as a separate item or can be
> reclaimed as raised by Melvin. Let's hope it can be successfully
> reclaimed.
>
> Vivienne
>
>
> Vivienne Dunlop
> Site Licensing/Contracts & Rights Manager
> Sage Publications Ltd
> 6 Bonhill Street
> LONDON EC2A 4PU
> Tel 020 7374 0645
> email: [log in to unmask]
>
>
> -----Original Message-----
> From: Melvin Morbey
> To: [log in to unmask]
> Sent: 14/06/00 14:16
> Subject: E-journals and VAT
>
> I'm investigating the possibility of claiming back VAT charged on
> subscriptions to the electronic version only of journals.
> I would be interested to hear from anyone, particularly those working in
> academic libraries, who are either already claiming back VAT or who are
> investigating the possibilities of claiming it back.
>
> Cheers
>
> Melvin
>
> --
> Melvin Morbey
> E-Journals Co-ordinator/Liaison Librarian for AMS and PRIS
> University of Reading Library
> Whiteknights PO Box 223
> Reading RG6 6AE
>
> Tel : (internal) 8779
> Tel : (external) 0118 9318779
> Fax : 0118 9316636
> E-mail : [log in to unmask]
>
>
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