At the end of last year, it was announced that Bpost would not receive any new subsidies from the government for newspaper and magazine distribution in our country. As a result, from 1 July 2024, publishers will be responsible for distributing their own magazines. Until 2026, you will benefit from a transitional arrangement in the form of a tax credit. What exactly does this mean and what price will you actually pay for the delivery of your magazines from 1 July onwards?
In our country, Bpost has been distributing magazines and newspapers for many years under a contract with the government. Until recently, it received a concession of 175 million euros for this (reduced to 125 million euros last year). At the end of last year, it was announced that this so-called newspaper contract would be terminated: instead of a new concession, Bpost received a one-off subsidy of €75 million to continue distribution until 30 June 2024. After that, publishers will have to organise the distribution of their magazines themselves or negotiate with a third party. Fortunately, the support will not be withdrawn abruptly. A transitional arrangement in the form of a tax credit is in place until 2026.
The tax credit distinguishes between non-commercial and commercial publishers.
Non-commercial publishers are sole traders and non-profit organisations such as non-profit organisations, parishes and mutual insurance companies that bear the costs of distributing paper magazines.
These publishers receive a refundable tax credit for the additional distribution costs they incur in 2024, 2025 and 2026 compared to 2023. This means that they are reimbursed for the additional costs compared to 2023. Please note: this only applies to deliveries to subscribers and not to deliveries to newsagents or other distribution chains such as supermarkets.
Of course, the additional cost must be the result of an increase in the distribution cost per publication and not an increase in the number of distributions. To claim the tax credit, the additional cost must therefore be justified.
Conclusion: the full additional cost is subsidised, but must be pre-financed for two years.
Commercial publishers are publishers who sell magazines for profit and are subject to corporation tax.
Instead of a fixed subsidy rate as previously mentioned, commercial publishers now receive a tax credit that only applies to “the portion of distribution costs” that fall within certain minimum and maximum amounts. The criterion of population density per region remains in force.
Please note: this only applies to deliveries to subscribers and not to deliveries to newsagents or other distribution chains such as supermarkets. The tax credit is also only valid for magazines that do not exclusively or mainly contain advertising material.
The tax credit is granted for the value of “the portion of the distribution costs” per publication that falls between the price range of 0.40 euro and 0.50 euro.
Is your distribution cost higher than the maximum limit of the price range? Then your tax credit will be limited to the portion of the distribution cost within the price range (max. 10 pence per publication).
There will be no fixed subsidy rate. Publishers who incur additional costs for newspaper distribution as a result of the termination of the newspaper contract will have those additional costs covered by the tax credit. In the case of commercial magazine distribution, the additional costs will be covered by a lump sum.
From 1 July 2024, Bpost’s offering will change as a result of the new agreement in our legislation. The main differences with the previous offering are: the choice of when Bpost delivers: next working day or within 3 working days; adjusted (more expensive) rates based on size and weight; a new delivery note.
Between the lines: conditions for obtaining a favourable magazine rate:
Want to know more? This document contains all the information about the new regulations and rates.
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