Tuesday 24 May 2016

Retrospective VAT on Adult Books


Oh dear, those of you with a passion for adult colouring books may need to get your stocks in now lest HMRC slap VAT on them.

The Telegraph reports that HMRC is pushing for VAT to be introduced on the sale of adult colouring books, and for the tax to be applied retrospectively.

Since VAT was introduced in Britain in 1973 children’s books, which includes “sample pictures for copying or outlines of pictures for colouring, painting or drawing” have been zero-rated. However, HMRC is arguing that these books are clearly marketed for adults, and therefore VAT should be levied.

The question is, at what level of intricacy should colouring books be deemed as “adult"?

Michael O’ Mara, chairman of the country’s biggest publisher of colouring books, said:
It is our view that this decision flies in the face of the relevant legislation. We and other publishers, following the lead of the Publishers Association, are fighting this decision and we hope that HMRC, on reflection, recognise that they have got this wrong.
VATable or not, the fact that HMRC is considering making the charge retrospective should ring alarm bells very loudly indeed!


Tax does have to be taxing.

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