HMRC's A to Z names unprinted paper, and waste paper, wrapping paper, graph paper, note pads and blank log books with it. Paper is not zero-rated for being paper: section 2 restricts Group 3 to goods produced on paper and similar materials, which is a limit on the zero rate rather than a grant of it, and the thing supplied still has to be one of the items in the group. Paper becomes zero-rated only once it has been made into a book, a leaflet, a brochure or another Group 3 item, which is why a printer's supply of the finished job can be zero-rated while the same paper delivered to the client's office cannot.
What decides it?
Whether it has become one of the Group 3 items yet.
Where does this come from?
HMRC VAT Notice 701/10, section 8, HMRC's guidance on zero rating books and printed matter. See the notices we work from.
Some real jobs
Pallets of blank paper supplied to a customer20%
Unprinted paper is listed as standard-rated.
Overs from a zero-rated leaflet run, supplied as part of that job0%
They are leaflets, and the rate follows the item rather than the sheet.
Blank notepads printed with a logo20%
Note books, pads and paper are listed as standard-rated stationery.
