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Old 10-21-2013, 01:35 PM   #10
HarryT
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Quote:
Originally Posted by Mike L View Post
That's true, but misleading.

The point is that almost everything in the UK is taxed (at 20%). Most food, and books, are exceptional, being zero-rated. Just because something isn't zero-rated, that doesn't make it a luxury.

Confectionery and hot meals in cafes and pubs are examples of food items that are taxed at 20%, but that doesn't mean they are considered luxuries. Similarly with adults clothes (20%), compared to children's clothes (zero). So, by the same token, ebooks are no more or less of a luxury than paper books.

Mike
Absolutely right. ebooks are taxed because they are classed as a service, not because they're a "luxury item". The EU VAT Directive which resulted in ebooks being taxed was originally aimed at making sure music downloads didn't escape VAT; ebooks just got caught up in it as a side-effect.
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