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HMRC has lost an appeal at the Upper Tribunal over zero rated VAT on digital newspapers with the publishers of The Times arguing that digital versions of its newspapers are not a service.
The judge ruled in favour of the newspaper stating ‘that item did not exist in 1991’ - referring to digital newspapers. Currently print newspapers are zero rated for VAT, while all online versions and website subscriptions pay VAT at 20%.
Read more at the Accountancy Daily.