Is There VAT on Books?

This is a question I am asked far more often than you might expect, usually by small business owners, authors, publishers, schools, or people setting up online shops. On the face of it, the answer sounds simple. Books in the UK are zero rated for VAT. However, once you look beyond traditional printed books, the position becomes more complex very quickly.

In this article, I explain how VAT applies to books in the UK, why books are treated differently from most goods, and where the boundaries sit between zero rated, standard rated, and exempt supplies. I will also cover digital books, audiobooks, mixed supplies, and common mistakes I see in practice. This is written from the perspective of someone who deals with VAT returns and HMRC queries regularly, rather than just quoting headline rules.

The Basic VAT Rule on Books

In the UK, most printed books are zero rated for VAT.

Zero rating means that VAT is charged at 0 percent. No VAT is added to the price, but the supply is still within the VAT system. This is an important distinction, because it allows businesses making zero rated supplies to reclaim VAT on their costs.

So if you buy a printed book from a bookshop, you do not pay VAT on it. That has been the case for decades and is a deliberate policy choice.

However, the phrase “most printed books” is doing a lot of work here.

Why Books Are Zero Rated for VAT

Books are zero rated because they are considered essential educational and cultural goods. The intention has always been to encourage literacy, education, and access to information without adding a consumption tax.

This policy dates back to the original introduction of VAT in the UK. Books were never brought into the standard rate, and the zero rate has been retained ever since.

From HMRC’s perspective, books are fundamentally different from leisure goods. That is why newspapers and certain other publications also fall under zero rating.

What HMRC Means by a Book

For VAT purposes, a book is not simply anything with pages.

HMRC looks at the physical characteristics and the purpose of the item. In broad terms, a book must:

Be printed or bound

Consist of text or images

Be designed to be read or referred to

Not be primarily for writing in

Not be predominantly advertising material

If those conditions are met, the book is likely to be zero rated.

This definition is wider than many people expect, but it also excludes some items that look book-like.

Printed Books That Are Zero Rated

In practice, the following printed items are usually zero rated:

Hardback books

Paperback books

Educational textbooks

Novels and fiction

Non-fiction reference books

Academic publications

Children’s books

Manuals and instruction books

The subject matter does not usually matter. A book about cooking, history, business, or fantasy is treated the same for VAT purposes.

Exercise Books and VAT

This is where the rules start to narrow.

Exercise books that are designed primarily for writing in are standard rated, not zero rated. HMRC draws a clear distinction between reading material and writing material.

For example:

A maths textbook is zero rated

A blank exercise book is standard rated

A workbook where writing is incidental may be zero rated

A workbook designed mainly for completing answers is standard rated

This distinction often catches schools and education suppliers out.

Diaries, Planners, and Notebooks

Diaries, planners, and notebooks are not zero rated.

Even though they may look like books, their primary purpose is to record information rather than to convey it. As a result, they are standard rated for VAT.

This applies to:

Daily diaries

Academic planners

Journals

Blank notebooks

Address books

The presence of some printed content does not change the VAT treatment if the main function is writing.

What About Magazines and Periodicals

Printed newspapers are zero rated, but magazines are not always treated the same way.

Generally speaking:

Newspapers are zero rated

Most magazines are standard rated

The difference lies in the nature of the content and the frequency of publication. Newspapers are considered current affairs publications, while magazines are usually classed as leisure or specialist publications.

There are exceptions, but they are limited.

VAT on Digital Books and Ebooks

For many years, ebooks were standard rated for VAT, even though printed books were zero rated. This caused understandable frustration and confusion.

That position has now changed.

Ebooks and other digital publications that would qualify as books if printed are now zero rated for VAT in the UK.

This includes:

Ebooks

Digital textbooks

Online versions of printed books

Downloadable PDF books

From a VAT perspective, digital and printed books are now broadly aligned.

Audiobooks and VAT

Audiobooks are treated differently.

Audiobooks are standard rated for VAT.

Even though the content may be identical to a printed or digital book, HMRC treats audiobooks as a form of audio entertainment rather than reading material.

This means:

VAT is charged at the standard rate

The zero rate does not apply

This distinction often surprises authors and publishers who assume all book formats are treated the same way.

Mixed Supplies of Books and Other Items

Mixed supplies are another area where problems arise.

If a book is sold together with other items, such as toys, stationery, or digital access, the VAT treatment depends on whether the supply is considered a single supply or multiple supplies.

For example:

A book sold with a toy may be standard rated if the toy is the main attraction

A boxed educational set may need to be split between zero rated and standard rated elements

A book bundled with online access may require careful analysis

Getting this wrong can result in underpaid VAT.

VAT on Books Sold Online

From a VAT perspective, it does not matter whether a book is sold in a physical shop or online.

The VAT treatment depends on the nature of the item, not the sales channel.

However, online sellers need to be careful about:

Correct VAT coding

Platform fees

Cross-border sales

Digital versus physical formats

I often see online sellers charging VAT unnecessarily on zero rated books, particularly when they first register for VAT.

Cross-Border Sales of Books

VAT on books becomes more complex when selling internationally.

The VAT treatment depends on:

Where the customer is located

Whether the book is physical or digital

Whether the customer is a business or a consumer

Distance selling rules

Import VAT rules

Printed books exported outside the UK are usually zero rated. Digital books sold to overseas consumers may fall under different VAT regimes.

This is an area where specific advice is often needed.

VAT Registration and Selling Zero Rated Books

One common misconception is that if you only sell zero rated books, you do not need to register for VAT.

This is not always true.

Zero rated sales still count towards the VAT registration threshold. If your taxable turnover exceeds the threshold, you must register for VAT, even if all your sales are zero rated.

The difference is that:

You charge VAT at 0 percent

You can reclaim VAT on your costs

For publishers and authors, this can actually be beneficial.

Reclaiming VAT When Selling Zero Rated Books

Because zero rated books are taxable supplies, VAT registered businesses can usually reclaim VAT on costs related to producing and selling books.

This can include:

Printing costs

Design and layout services

Editing and proofreading

Marketing services

Website costs

This is often overlooked by small publishers and self-published authors who assume VAT registration offers no benefit.

Common Mistakes I See With VAT on Books

In practice, I regularly see the same errors.

These include:

Charging VAT on printed books when it should not be charged

Treating audiobooks as zero rated

Incorrectly zero rating notebooks and planners

Misclassifying workbooks

Failing to register for VAT despite exceeding the threshold

Not reclaiming VAT on costs when entitled to do so

Most of these mistakes come from assumptions rather than deliberate non-compliance.

How HMRC Approaches VAT on Books in Inspections

During a VAT inspection, HMRC will look at:

Product descriptions

Invoices and receipts

Online listings

Bundled offers

VAT codes used in accounting software

They are particularly interested in borderline items that are marketed as books but function as something else.

Clear product descriptions and correct VAT coding make these reviews much smoother.

Books Provided as Part of Education or Training

Books supplied as part of an educational course are usually treated as zero rated if they meet the definition of a book.

However, if the book is incidental to a wider supply of education or training, the VAT treatment may follow the main supply.

This is another area where context matters.

Charity Sales and VAT on Books

Charities selling donated books in charity shops often benefit from VAT reliefs.

Donated goods sold by charities are usually zero rated for VAT, regardless of the normal VAT treatment of the item.

This is a separate relief and should not be confused with the zero rating of books themselves.

My Practical Advice on VAT and Books

When advising clients, I focus on clarity and evidence.

I recommend:

Reviewing each product carefully

Not assuming everything that looks like a book is zero rated

Using clear product descriptions

Checking VAT codes regularly

Taking advice on mixed supplies

Keeping good records

VAT on books is generous by UK standards, but it is also precise.

Final Thoughts on VAT and Books

So, is there VAT on books in the UK?

For most printed books and ebooks, the answer is no, because they are zero rated. That is a long-standing and deliberate policy choice.

However, not everything associated with books qualifies. Audiobooks, stationery, planners, and many book-like products are standard rated. Mixed supplies and digital formats need careful analysis.

In my experience, businesses that take the time to understand these distinctions avoid problems later. Those that rely on assumptions often end up correcting VAT returns or repaying VAT to HMRC.

As with most VAT issues, the detail matters. Getting it right from the start is far easier than fixing it after the event.