VAT changes mean extra administrative work in advance of 1 January, advises CSNA
29 November 2022
As you will be aware, newspapers will be changing their VAT status from 9% VAT to 0% on 1 January.
The Convenience Stores and Newsagents Association (CSNA) advises that for retailers who scan the products, each title will have a different barcode applied to each edition. The CSNA has been supplied with the new barcodes and will make them available to members presently.
It is the intention of each of the publishers to continue to use the same RSP cover price after the VAT has been removed.
“In all instances, the wholesale prices will be increased to enable the publishers recoup “their” VAT,” the CSNA states.
“This increase may lead to some retailers migrating from one Carriage Charge Band upwards to another if and when the distributors change the rates,” the CSNA adds. “It is therefore only fair that all news retailers will be able to avail of “their” element of the VAT, effectively increasing the cash margin earned, while continuing to enjoy the existing agreed percentage terms.”
Naturally, as our readers will be aware, the determination of the retail selling price is a matter for each individual retailer.