Many, but not all, goods supplied by the print industry benefit from the zero-rate of VAT.

The main advantage of zero-rating, compared to VAT exemption, is that VAT on costs incurred for the purpose of making zero-rated supplies can be fully recovered as input tax.

Currently the UK VAT rules apply zero-rating to the following goods produced by paper, and similar materials such as card:

• Books, booklets, brochures, pamphlets and leaflets
• Newspapers, journals and periodicals
• Children’s picture books and painting books
• Music (printed, duplicated or manuscript)
• Maps, charts and topographical plans
• Covers, cases and other articles supplied with items 1 to 5 and not separately accounted for

With the exception of talking books for the blind and handicapped, which are subject to the zero-rate of VAT, the standard rate of VAT applies to goods containing text in other formats, for example cassette and CD ROM formats. The standard rate of VAT also applies to labels for any purpose and to plans for drawings for industrial, architectural, engineering, commercial or similar purposes.