HC Deb 19 February 1993 vol 219 cc378-9W
Mr. Peter Bottomley

To ask the Chancellor of the Exchequer what rate of VAT is levied on(a) newspapers, (b) paid-for magazines, (c) free magazines and (d) books in each EC member state.

Sir John Cope

The information available for each EC member state for VAT levied on the sales of newspapers, paid-for magazines and books is set out in the tables. I am not aware of any circumstances under which VAT is levied on free magazines in these countries, but sale of advertising space would normally be taxable.

VAT rates on magazines, newspapers and books in EC member states
Percentages
Country Magazines Newspapers Books
Belgium 6 6 6
Denmark 0 0 25
France 2.1 2.1 5.5
Germany 7 7 7
Greece 4 4 4
Ireland 10 10 0
Italy 14 4 4
Luxembourg 12 12 12
Netherlands 6 6 6
Portugal 5 5 25,30
Spain 3 3 3
United Kingdom 0 0 0
1 A rate of 12 per cent. has been introduced in Italy. We do not currently have any information about its coverage, and so the rate shown is that applied before its introduction.
2 Portugal applies a higher rate of books of an obscene or pornographic nature.

Source: VAT in Europe (International Bureau of Fiscal Documentation) according to information available as at 1 January 1993.

Mr. Peter Bottomley

To ask the Chancellor of the Exchequer what estimate he has made of the VAT collected on advertisements in(a) newspapers, (b) paid-for magazines and (c) free magazines.

Sir John Cope

Detail about the receipts from VAT on specific items of expenditure is not collected on VAT returns. An estimate of the total revenue yield from advertisements in newspapers, journals and periodicals was made in 1985 when the zero-rating was withdrawn. The equivalent figure now is about £100 million.

Mrs. Helen Jackson

To ask the Chancellor of the Exchequer what assessment he has made of the impact of imposing VAT on bus fares.

Sir John Cope

Table D1 of the statistical supplement to the 1992 autumn statement shows the estimated cost of zero-rating domestic passenger transport in 1992–93 is £1,100 million. This estimate makes no allowance for the behavioural response to applying the standard rate of VAT to this category, so the actual yield would probably be less. Bus fares account for around 44 per cent. of the total.