Originally Posted by mr ploppy
Amazon rents a cupboard in Luxemborg so they only need to charge the Luxemborg VAT rate, which is about 5% for digital items.
That only applies to them and their books, there are other companies around apart from Amazon... I repeat the VAT on eBooks in the UK is 20%, moral being don't originate your eBook sales in the UK...
And for other comments, what does Agency Pricing have to with anything... half of the pubs have already settled and have no Agency Pricing any more plus selling a license is equally subject to VAT - it makes no difference whether you purchase an eBook or a license for one, they're both subject to VAT in the sales source country...