After a lengthy and expensive court battle between HMRC and Harrier LLC (Maryland USA)with its Trueprint brand late last year, it has now been confirmed that Photobooks should receive the same treatment with regards to VAT as any other book. This means no more VAT on any photobooks produced so we have a lot to thank Harrier for.
When you factor in that some of the heftier, top end of the scale books weigh in at a cost of around £320 (for the Asukabook Neo Classic for example), that is a saving of more than £60 per book…great news for wedding photographers!
Andrew Moorcroft from Asukabook UK and Ireland had this to say on the ruling:
“I am delighted with this judgement.
The imposition of VAT on Photobooks has always been an issue of extreme frustration for AsukaBook – and Harrier and Trueprint must be commended for finally being able to bring common sense to the issue.
Photobooks are exactly what they say they are – books with photographs.
How this differentiated them from books comprising text, only HMRC itself will know.
This ruling will allow us to be a lot more competitive in a sector that has become one of the most aggressive in the industry. Furthermore, it will allow AsukaBook to maintain its policy of producing books of the highest quality exclusively for the professional marketplace.
This strategy of focusing solely on this market sector meant that we were hit particularly hard by the increase in VAT to 20%. Our prices have always reflected our mission to maintain consistently high quality and never to cut corners at any stage of the production process.
This judgement, which is effectively a 20% price reduction, will be a welcome bonus for our non-VAT registered customers.”
Hip Hip…Hooray! Hip Hip…