Understanding VAT Treatment for Musicians: A Comprehensive Guide

Sinéad Pratschke
Sep 25
3 min read

Updated: Oct 7

VAT on Printed Music: Zero Rated

We started with the rules around printed music. This was nice and straightforward; printed music is zero rated for VAT.

Most of you will be familiar with this, as it mirrors the zero rating applied to books and similar publications.

Hiring Printed Music: Does VAT Apply?

The key question was whether the hire of printed music should be treated differently from its sale. Luckily, the rules on the hire and loan of printed music follow the same treatment as printed music itself.

In other words, because printed music is zero rated, the hire of printed music is also zero rated.

The Caveat: Photocopies and Loose Pages

A small but important caveat: photocopies generally will not qualify for zero rating.

Why? Because they’re usually just loose pages and incomplete without the other constituent parts. For this article, we’re assuming that the hire parts being supplied are properly bound and more akin to a brochure or pamphlet, which supports the zero rating.

VAT on Digital Music: Where It Gets Complicated

Things became trickier when we looked at digital supplies of printed music.

From 1 May 2020, VAT rules on the supply of e-publications were updated. The update specified that e-publications should follow the VAT rules of their printed counterparts (except for advertising, audio or video content, which don’t concern us here).

So far, so good. But HMRC acknowledges there is no clear definition of an “e-publication.” Instead, they say you should consider the characteristics and purpose of the publication to decide whether it falls within the zero rate.

HMRC Guidance on E-Publications

HMRC’s guidelines state:

“The objective of the change to zero rate certain e-publications is to support literacy and reading in all its forms, allowing e-books, e-newspapers, e-magazines and academic e-journals to be entitled to the same VAT treatment as their physical counterparts. The scope of the measure does therefore allow for the zero rating of supplies of music manuscripts, maps and charts when they are in the form of e-publications.”

This would suggest that e-publications of printed music should also be zero rated; including the hire of digital versions of printed music.

The Contradiction: Digital Music Manuscripts

However, HMRC then undermines this clarity. They go on to say that the guidance does not cover standalone items. And, crucially, they cite digital music manuscripts as an example of a standalone item that should be standard rated.

This is deeply confusing. On the one hand:

Yes, you can zero rate e-publications of music scores (they follow the rules of printed scores and meet the literacy objective).
On the other hand: HMRC explicitly gives digital music manuscripts as an example of something that should be standard rated.

Our Takeaway and Recommendation

Our takeaway is that HMRC doesn’t fully understand the nature of a hire library of music parts. In trying to be helpful, they’ve created more confusion by citing digital music manuscripts as an exception.

Were it not for that specific example, we’d be confident in zero rating e-publications of printed music.

But under the current circumstances, we recommend:

Zero rate the hire of your printed ensemble parts
Apply the standard VAT rate to the hire of e-publications of ensemble parts

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Frequently Asked Questions about VAT on Music Hire

Is printed music zero rated for VAT?

Yes. Printed music is zero rated for VAT, in the same way that books are. This also applies to the hire of properly bound printed music parts.

Does VAT apply to hiring sheet music or ensemble parts?

If you are hiring printed and bound sheet music or ensemble parts, these are generally zero rated. However, photocopies or loose pages usually do not qualify for zero rating.

What about digital music scores or e-publications?

This is more complex. While HMRC guidance suggests that e-publications should follow the rules of printed music and be zero rated, they also state that digital music manuscripts may be standard rated. In practice, this means applying the standard VAT rate to digital hires until clearer guidance is issued.

Conclusion: Navigating VAT for Musicians

Navigating VAT can be challenging for musicians, especially when it comes to hiring printed and digital music. Understanding these nuances is crucial for compliance and financial planning.

As a musician, staying informed about VAT regulations can help you make better business decisions. Always consult with a tax professional if you're unsure about your specific situation.

By keeping these guidelines in mind, you can ensure that your music hire practices are compliant with current VAT laws. This will allow you to focus more on your music and less on the complexities of taxation.