HC Deb 15 January 2002 vol 378 cc252-3W
Mr. Lidington

To ask the Chancellor of the Exchequer for what reason VAT is applied to digitised books. [26446]

Mr. Boateng

Digitised books do not fall within the ordinary meaning of books and cannot be zero-rated for VAT.

Mr. Lidington

To ask the Chancellor of the Exchequer what analysis he has made of the risk to future revenue from VAT as a result of the growth of trade in digitised products. [26447]

Mr. Boateng

Customs and Excise have for several years have been working alongside business and the UK's partners in the EU and OECD to ensure that the tax system adapts to increased trade in digitised products, and to minimise any risks to the revenue. Customs' current assessment is that the potential risk is very small.

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