The promise to zero rate VAT on e-books and e-newspapers has been fast-tracked by the government in a bid to boost publishers hit by the coronavirus outbreak.
In the spring budget the chancellor announced that E-publications (e-books, e-newspapers, e-magazines and academic e-journals) will be VAT zero-rated from 1 December 2020 but this is now apply with effect from 1 May 2020.
Previously, the standard VAT rate of 20% applied to digital publications.
In support of the print newspaper industry, the government has also announced it will be spending up to £35m on newspaper advertising over the next three months as part of its Covid-19 communications campaign to ensure the whole UK is aware of the latest government guidance and advice.
The extra advertising revenue will be split between local, regional and national print media. These plans will be constantly reviewed over the next three months to ensure the campaign is as effective as possible.