Vol. 492 No. 6
109 Proinsias De Rossa asked the Minister for Finance if he will reduce the rate of VAT on professional education journals in view of their educational role and the fact that the rate is considerably higher than that of most other EU countries; and if he will make a statement on the matter. [14726/98]
VAT law currently provides for the application of the zero rate on the supply, intra-Community acquisition or importation of printed books and booklets. Research journals, including professional educational journals, in book form, other than those which are issued as periodicals, attract the zero rate of VAT. Generally speaking, where such periodicals are normally paid for by annual subscription, have their pages sequentially numbered by reference to the completed work and are supplied with a binder or are bound for no extra cost in book form at the end of the year, they are regarded as books and thus zero rated for VAT purposes. This approach ensures that the zero rate applies to most research journals, including those purchased by the libraries of the universities, research institutions and similar bodies. ln addition, the Finance Act, 1998, provided for a significant rationalisation of the VAT treatment of printed matter. With effect from l May this year, the reduced rate of 12.5 per cent rather than the standard rate of 21 per cent, has applied to magazines and periodicals generally, as well as to brochures and leaflets and other similar printed matter which is not purely advertising. Thus, those educational and professional journals which do not qualify for zero rating have benefited from this recent reduction in the VAT rate of 8.5 per cent. If there are any particular cases causing difficulties, I would suggest the Deputy should advise those concerned to contact the Revenue Commissioners, who will be glad to discuss the matter with them.
