3.4 is where a lot of print that looks zero-rated stops being so. Items which might otherwise be leaflets, brochures or pamphlets may not be zero-rated if they are primarily intended for completion or detachment, and HMRC puts a number on primarily: an item is accepted as not primarily for completion if 25% or less of its total area is blank space available for completion plus parts to be detached and returned, taken together. Then the absolute rule, which no percentage can save: whatever the area for completion, a publication designed to be returned whole after completion is always standard-rated. Section 8 lists forms, questionnaires, order forms, receipt forms, ballot papers and pools coupons on the standard-rated side.
What decides it?
A quarter of the area, counting blanks and tear-offs together. Returned whole is standard-rated regardless.
Where does this come from?
HMRC VAT Notice 701/10, paragraph 3.4, HMRC's guidance on zero rating books and printed matter. See the notices we work from.
Some real jobs
An application form to be filled in and posted back20%
Designed to be returned whole after completion, which is always standard-rated.
A questionnaire with tick boxes over most of the sheet20%
Far more than a quarter of the area is there for completion.
An A5 leaflet with a small reply slip in one corner0%
Under the quarter threshold for completion and detachment taken together.
