Tribunal Rules Story Terrace’s Bespoke Books Are Zero-Rated, Not Standard-Rated Ghost-Writing Services

• The tribunal ruled that Story Terrace’s supplies are zero-rated books, not standard-rated ghost-writing services, under UK VAT law.
• The decision was based on the economic and commercial reality of the transaction, focusing on the typical consumer’s perspective that the main purpose is to receive a physical book.
• The tribunal rejected HMRC’s argument that the customized nature of the service made ghost-writing the predominant element.
• The contract structure, mandatory print provisions, and lack of a ghost-writing-only option supported the view that book production was the predominant element.
• The case confirms that even bespoke/customized products can be zero-rated if the main supply is the physical product, not the customization service.

Source: bailii.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---