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.