Is there VAT on design, artwork and typesetting on their own?
Design, artwork and typesetting on their own is standard-rated (20% VAT) in the UK under HMRC VAT Notice 701/10, paragraph 7.3.
PRIVATE & CONFIDENTIAL
Design sold on its own: twenty per cent.I do like a nice font.
Design, artwork and typesetting on their own
20% VAT
Design, artwork or typesetting sold on its own is a standard-rated service. When the printer supplies it as part of a zero-rated print job, it can ride along at 0%.
HMRC VAT Notice 701/10, paragraph 7.3
Need it printed?
Tell Tenfold the quantity, size and deadline. We'll put together a quote for your job.
Why is design, artwork and typesetting on their own 20%?
Section 7 asks one question first: is your service of an original or specialist nature, or is it the production of goods. Services of an original or specialist nature are always standard-rated, because any goods produced are incidental to the service, and HMRC's examples include original writing, translation, typing and transcription. 7.3.2 puts typesetting on that side in terms: if you provide typesetting only, your charge must be standard-rated, even where you know the final product will be zero-rated. But 7.3.1 goes the other way for a printer with the whole job: where you have a contract to supply items that qualify for zero rating, you may zero rate any preparatory or post-production work you do in conjunction with it, whether or not you itemise it separately on the invoice, and even if you used sub-contractors.
What decides it?
Whether you are supplying the finished zero-rated print, or only the design.
Where does this come from?
HMRC VAT Notice 701/10, paragraph 7.3, HMRC's guidance on zero rating books and printed matter. See the notices we work from.
Some real jobs
Artwork and typesetting invoiced on their own20%
7.3.2 says a typesetting-only charge must be standard-rated.
Design itemised separately on an invoice for a zero-rated brochure you are printing0%
7.3.1 allows preparatory work done in conjunction with a zero-rated job, itemised or not.
Copywriting for a client's leaflet20%
Original writing is named at 7.2 as a service of an original nature.
