VAT registration

VAT registration

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A client provides editorial and compilation services to a book publisher.......firstly, is it the case that as the book sales by the publisher are zero rated, my client could (if vat registered) also zero rate his services to the publisher? Secondly, if the editorial services are zero rateable (thus involving no output vat) but for a period of twelve months in the recent past, took him over the VAT threshold do we now need to look to register him for that earlier period and then subsequently de-register him?

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By spidersong
12th May 2011 09:49

Zero rating

The zero rating relates to the supply of printed matter, an editor and compiler doesn't provide printed matter the publisher does. If we used the logic that if you supply something to a person who's making a zero rated supply then you can supply it zero rated then the publisher could get his paper, ink, and presses zero rated, indeed builders merchants would need to know which of the bricks they sell were for use in a new house and could thus be zero rated.

So unfortunately the client is providing editorial services for which there is no VAT relief (unless the publisher is established outside the UK), if they've gone over the threshold then they will need to register and account for VAT. If they can demonstrate that at the time they went over they could've proved that future turnover would be below the dereg threshold then they may be able to get exception from registration, or they may be able to register and apply for deregistration at the same time as being no longer required to be registered. But if they have exceeded the threshold there will be penalties.

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