Magazines Ireland welcomes the announcement that the 9% VAT rate on tourism-related activities is being retained.
In our pre-budget submission we set out our objective to have this retained. Originally introduced in 2011, the reduction in VAT to 9% on magazines and periodicals has been positive for the industry and reflects the emphasis and support of Government and policy makers towards the sector.
However we also pointed out in our submission that many of our European neighbours enjoy a zero rate of VAT on magazines, including the UK, in recognition of the need for citizens to have greater access to the printed word and also the contribution magazines make to literacy levels.
Furthermore printed and digital magazine formats are treated differently for VAT purposes across Europe. In Ireland, VAT on digital magazines is charged at 23% compared to the current 9% on printed magazines. We believe that the lack of alignment between the digital and print formats, represents a barrier to existing and future investment in the digital environment. Not only has it affected the competitiveness of the magazine publishing sector, but it does not take into account the evolution of the new media environment.
Our auditors have produced a Budget Highlights 2015 document for members which you can find on our site here
The Magazines Ireland pre-budget submission is available atwww.magazinesireland.ie/member/MembersDocuments.cfm
