VBOOKS8520 - Treatment of supplies of e-publications that span 1 May 2020

The zero rate for e-publications applies to supplies made on or after 1 May 2020. In cases where there has been a payment for qualifying e-publications prior to 1 May and the supply is received on or after 1 May, businesses can opt to account for VAT at the date on which the supply of the service takes place instead of the date when the payment is received – and so apply the zero rate. However, where a business has issued a VAT invoice showing VAT at 20%, it will need to issue a credit note for the over-charged VAT. If the business has not issued a VAT invoice, it can simply refund the 20% VAT.

Further information about the treatment of supplies that straddle a VAT rate change and the issuing of credit notes can be found in sections 30.7.4, 30.7.5 and 30.9 of VAT guide (VAT Notice 700).