A binder has to earn its way out, and 5.2 sets a strict test: a binder supplied on its own is zero-rated only if it is designed to contain a loose-leaf book and the exact title of that book is printed on the outside. HMRC says in terms that a company name alone is not enough. It then closes the most common assumption: all other binders or files for general or office use are standard-rated, and that specifically includes binders for part works, journals or periodicals, whether titled or not. So a branded binder for a magazine subscription is standard-rated even though the magazine itself is zero-rated.
What decides it?
The exact title of a loose-leaf book on the outside. A company name or a magazine title does not do it.
Where does this come from?
HMRC VAT Notice 701/10, paragraph 5.2, HMRC's guidance on zero rating books and printed matter. See the notices we work from.
Some real jobs
500 branded ring binders with the company logo20%
A company name alone is not enough for zero rating.
A binder to collect a monthly part-work magazine20%
Binders for part works, journals or periodicals are standard-rated whether titled or not.
A binder printed with the exact title of the loose-leaf manual it holds0%
This is the one case 5.2 allows for a binder supplied on its own.
