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Originally Posted by Graham
So would you also advocate paying VAT on paper books, Harry? These are currently zero-rated in the UK.
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Books sold as entertainment? Yes, I would, absolutely.
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The reason that eBooks get hit with VAT is that they are treated as downloadable software.
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That's right. The VAT e-commerce directive was brought in primarily to ensure that VAT was paid on downloaded music. e-books just got "caught up" by it.