Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the Upper Tribunal’s ruling in News Corp UK & Ireland Limited v Commissioners for HMRC [2019] on VAT on digital publications; and if he will make a statement.

The Government keeps all taxes under review, including VAT.

The impact on literacy and people with disabilities of any reduction of VAT on e-publications is likely to depend on commercial decisions about the extent to which any tax saving would lead to price reductions for consumers, and any associated behavioural changes.

Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations. Any representations on this issue will be considered as part of the fiscal events process.

Over the past year the Government has engaged with industry on this issue. It will continue to consider the benefits and risks associated with changing the VAT rate for e-publications; for digital businesses, high street retailers, consumers and taxpayers.

HMRC are carefully considering the Upper Tribunal’s ruling.