UK last major supporter of higher VAT rates on e-books

UK last major supporter of higher vat rates on e-books

France, Germany, Italy and Poland have called on the European Union to allow the EU member states to levy a reduced rate tax on e-books, to match that charged on physical copies. As many countries try to build their digital economy a lower VAT on e-books is a good step forward.

France currently charge 5.5% VAT on e-books whereas the UK charge their standard rate of 20%. However in a court ruling in the last few weeks it was declared that France and Luxembourg were breaking the EU VAT directive by charging their reduced rates on e-books and it has now been ruled that they must increase this to their standard VAT rates.

However Italy reduced its VAT on e-books from 23% to 4% at the start of 2015, when the new digital download rules came into place. Poland has also been pushing for a reduced rate for e-books since 2013. This means that out of the biggest 5 EU countries the UK has been left alone in its support of higher rates on e-books.

For more information on this subject, please see our previous post.

Court rules in favour of higher VAT rate on e-books

Laura Stockley
Follow Us

Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
Follow Us

Latest posts by Laura Stockley (see all)