|09-07-2008, 01:16 AM||#1|
Join Date: Dec 2007
Location: Glasgow, Scotland
Device: Amazon Kindle Paperwhite
VAT and books in the UK.
I had no idea until a few days ago that ebooks sold through businesses located in the UK were required to charge Value Added Tax at 17.5%. Paper books, magazines and newspapers sold in the UK are sold without VAT; but apparently ebooks are placed under the umbrella as other 'digitised products', making them (I assume) legally no different from any other piece of software such as a computer game or word processor.
I have a vague recollection that one of the reasons there is no VAT on books in the UK is that it was felt it would be wrong to tax knowledge; that 'knowledge' in the form of books should be made affordable to all.
Assuming that I have this right, then shouldn't it be the case (obviously I'm directing this at people in the UK, especially ones who aren't nearly as clueless about taxes and the like as I am) that ebooks should also be exempt from VAT, given that they have ISBN's which are, to my knowledge, only applied to books? And does this mean that UK law has failed to keep up with the advent of digital books?
|09-07-2008, 03:53 AM||#2|
Join Date: Nov 2006
Device: Kindle PW2, iPad Retina Mini, iPhone 4, MS Surface Pro
eBooks are classified as "computer software", and hence liable for VAT.
Best to buy your e-books from US stores.
|09-07-2008, 04:09 AM||#3|
Join Date: Aug 2006
Location: Loreto, Italy
Device: HP2710p iLiad Cybook Sony 505 Kindle DR1000S
The same occurs all over UE countries: a UE regulatory norm specifies that ebooks have to be considered "informatic services", not books, and submitted to the standard VAT. Here in Italy, for instance, we've to apply 20% VAT.
Ironically national laws normally consider ebooks being real books to sumbit them to the (crazy) mandatory deposit to public libraries laws.
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