VAT is payable on most large format print, such as posters and banners. A general rule of thumb is that print that is intended to be kept will incur VAT, while print that is to temporary and not intended to be kept will not incur VAT.
The VAT Exemption and VAT Payable rules are detailed below.
For the purposes of VAT, leaflets which conform to the following standards will be VAT exempt:
– consist of a single sheet of paper not greater than A4 in size;
– larger publications up to A2 size can be zero-rated provided that they are printed on both sides, folded down to A4 size or smaller;
– are intended to be held in the hand for reading by individuals (rather than for hanging up for general display);
– are used to convey information;
– are supplied in sufficient quantity (at least 50 copies) to permit general distribution;
– are either designed to be read a few times and then thrown away or to accompany some other product or service, e.g. an instruction leaflet.
VAT will be payable on items which:
– are intended to be kept or used for a specific purpose, for example posters and banners;
– enable people to obtain admission events, to premises, etc;
– enable people to obtain a discount on goods or services, for example including vouchers, using the words ‘free admission with this leaflet’, etc;
– are printed on laminated paper;
– have areas for completion of information (such as a form);
For further information on VAT, please check HRMC’s official web site.