Is there VAT on information-carrying folders?

Why are information-carrying folders 0%?

HMRC allows a folder to escape the standard rate, and sets out exactly how. Most folders and wallets are standard-rated, but 5.2 says that if they convey information themselves they may qualify as brochures, and 3.2 gives the conditions for a wallet-type brochure designed with a flap: it must convey information, contain a substantial amount of text with some indication of contents or of the issuing organisation, not be primarily designed to hold other items, and be supplied complete. The third condition is the one that decides most real jobs. A printed folder whose interior is a pocket waiting for inserts is primarily designed to hold other items, however much is printed on the outside.

What decides it?

Whether its job is carrying the information or carrying the inserts.

When would information-carrying folders be charged at 20% VAT?

The zero rate applies as long as it's: conveys information with a substantial amount of text; not primarily designed to hold other items; supplied complete. If any one of those isn't true, it isn't zero-rated, so it's 20%.

Is the design and artwork for information-carrying folders zero-rated too?

If your printer does the design, typesetting or finishing as part of the same zero-rated print job, that work can be zero-rated too. Design bought separately from a studio is a standard-rated service.

Where does this come from?

HMRC VAT Notice 701/10, paragraph 3.2, HMRC's guidance on zero rating books and printed matter. See the notices we work from.

Some real jobs

• A wallet-style folder with four printed pages of scheme detail inside0%

  It conveys information with substantial text and is supplied complete.

• A printed folder with a pocket, supplied empty20%

  Primarily designed to hold other items, which is the condition it fails.

• A folder printed inside and out but with no text beyond a strapline20%

  Decoration is not conveying information with a substantial amount of text.