Marketing and print industry seeks DM VAT clarification

Trade bodies are calling on HM Revenue & Customs to clarify the VAT position for companies supplying direct mail in the forthcoming Finance Bill.

/s/e/f/letterbox160.jpg

The Institute of Practitioners in Advertising (IPA), along with the Direct Marketing Association and British Printing Industries Federation, are acting on behalf of members over confusion about tax treatment. Supplying companies, which are typically SMEs, are finding disparity in tax treatment and some “financially crippling back tax assessments”.

The usual practice that has been accepted in routine VAT inspections has been that the supply of advertising leaflets and associated delivery is deemed a single supply of zero-rated printed matter.

This has recently being challenged by the Anti-Avoidance Group on a case by case basis and reinterpreted in a way that standard rate VAT has been assessed for all or part of the supply.

The submission from the trade bodies asks that clarification of the VAT position be included in the proposed Finance Bill. It also offers the support of the three trade bodies in help drafting a comprehensive explanation for suppliers and inspectors alike.

Alex Hunter, finance director of IPA, says: “We hope that by doing this the threat to companies of crippling back assessments is removed. There seems to have been a change in interpretation by HMRC that has neither been communicated clearly enough nor made explicit in law. It is imperative any confusion is cleared up so that companies can operate on a level playing field.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here