VAT: Publishers Would Flee Abroad

Magazine publishers yesterday released research carried out by the Periodical Publishers Association, showing that a majority of UK publishers are considering ways of avoiding the impact of 17.5% VAT.

Many publishers would move all or part of their operations outside the UK. The survey shows that specialist publications such as Nature, Choice and Middle East Economic Digest would move, mailing from France, Holland or the United States, with up to 1,000 titles following suit.

Specialist publishers will be followed by subscription bases of mainstreamtitles administered from tax-friendly environments like France, Holland, Jersey or the United States.

PPA Chief Executive Ian Locks pointed out the effects on the Canadian magazine publishing industry after a tax of just 7% was imposed. The industry had been devastated, with most markets now being served from the US, and added that it seemed inevitable that the same would take place here. He also pointed out that publishing is at an important watershed at present as electronic advances and multi-media developments are changing the industry.