§ Mr. Ron Davies
To ask the Chancellor of the Exchequer whether it is proposed that charities should become liable to charge value added tax on the production and sale of books, magazines and other printed matter as part of the European proposals for value added tax harmonisation; and whether it is proposed that charities would be able to reclaim value added tax paid for(a) the purchase and (b) the production of books, magazines and other printed matter.
§ Mrs. Gillian Shephard
The Commission's most recent proposals, in May 1989, on the VAT rate structure in the single market were not entirely clear as to what might continue to be zero rated. Subsequent European Community discussions have advanced matters little. The United Kingdom has, however, stressed that we must retain the ability to apply a zero rate to those supplies that are currently treated in this way. These, of course, include the production and sale by charities of books, magazines and some other printed matter. As any Community legislation in this area requires unanimity, the United Kingdom's position is protected.463W
There have been no proposals to alter the rules in respect of VAT reclaimable on purchases and production of books, and so on.