How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

There, I sell Cards with special needs.

This answer was rated:

Hello There,
I sell Cards for children with special needs. The cards are printed and held together with a book ring. The cards contain illustrations and each card set is part of a series covering different topics. The cards sets have a front and back cover and are held together with a book ring binder.
I am looking like I will need to register for VAT in November and am trying to do some research to see what portion of my inventory will be Zero rated as I sell to children with special needs.
Over and above the zero rating for items designed for children with special needs (an arguement could be made that children without disabilities may be using them) I have found some legistlation under Group 3 - printed publications that I believe fits what I am selling.
I wondered if you could tell me if you also believe this to be correct and whether a VAT advisor is required or whether I need to write to HMRC??
Group 3 701/10
5.2 Ring binders and similar binders designed to hold togther a loose leaf book are Zero rated.
3.7 Picture books are Zero rated whether they are printed on paper, plastic or textiles.
3.1 Loose leaf books are Zero rated whether complete with their binder or not.
VAT Notice 48:
3.5 Concession in relation to card based boxed continuity series publications even though they are not bound for VAT purposes will be treated as a book and zero rated.
Kindest regards
Thanks for your question
These could be zero rated under several considerations
1) they are not book but cards and furthermore held together by as ring binder so zero rated under 5.2 of the 701/10
5.2 Binders and folders
Ring-binders and similar binders supplied on their own are zero-rated if they are designed to contain a loose-leaf book, provided the exact title of that book is printed on the outside. A company name alone is not enough for zero-rating. A binder supplied with loose-leaf pages to make a book is treated as part of the zero-rated supply whether titled or not. All other binders or files for general or office use are standard-rated. This includes binders for part works, journals or periodicals (whether specifically titled or not).
Most folders and wallets are standard-rated but if they convey information themselves they may qualify as brochures (see paragraph 3.2).
Then we have the educational aspect which it might fall within
701/30 but as this is a business and the main trade aspect is not provision of education this will NOT apply here (just for your information)
Then we have special needs - 701/7 but as you advise - these could be used by fully able children and therefore it may not be possible for you identify who is making the purchase, and more importantly the end user being a special needs individual. AND it does not fall within the eligible items as the item has to specifically for the disabled or elderly patient - and this is not. (just for your information)
So your view was correct - it will be exempt under 701/10 Section 3 item 5.2 and also 3.7 and 3.1
And the concession to which you refer is also listed in VAT notice 701/10 at 5.4
4.4 Incomplete publications
Parts of books, unbound pages and separate illustrations are standard-rated.
By concession, the following are zero-rated:
part work publications designed to build up into a zero-rated book - once a complete book has been supplied, amendments to it may also be zero-rated
card based continuity series publications, even though not bound, but stored in their container will for, VAT purposes, be treated as a book
So you can be confident in the fact this is zero rated - I produce ring binder booklets for educational workshops for those thinking of OR those already newly self employed) and these are always zero rated.
Let me know if I can be of any further assistance
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Thank you. I was sure that my products are zero rated but just wanted to make sure.
Hi Michelle
Its always good to check -
Do let me know if I can be of any further assistance - but it would be appreciated if you could take the time out to rate the level of service I have provided.