According to new plans currently being considered by the government, adult colouring books could soon be subject to VAT.
Currently both children’s and adult colouring books are exempt from VAT, however adult colouring and dot to dot books could soon be classed as ‘uncompleted’ books and attract the full 20% VAT.
Adult colouring books have become increasingly popular over the last few years, with more than 3 million being sold in 2015 worth as estimated £20.3m.
HMRC have confirmed that children’s colouring books are entirely free of VAT and they have no plans to change that. However, they plan to meet with publishing representatives to discuss the VAT treatment of adult colouring books.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.