Quote:
Originally Posted by HarryT
Not when it comes to eBooks. The EU "e-commerce VAT directive" specifies that each EU member state has to charge its full rate of VAT for downloaded data, such as music and eBooks. Spain, for example, tried to reduce the VAT rate it charged for eBooks; this was ruled to be unlawful by the European Commission.
|
This is not correct.
The EU has declared (taking effect from January 2011) that it is acceptable for countries to lower the VAT rate of eBooks to the same level as that of paper books (either 0% or a lower rate depending on the country), but has stated that in the long term they want to get rid of the notion that some products have lower VAT rates than others.
Several EU countries have decided to lower their eBook VAT as a result (including France).
The EU seemed to be swayed by the argument that companies selling books within the EU had to include VAT in their prices, yet companies outside of the EU could sell to EU customers without having to charge any tax at all. This has the potential to make EU companies less competitive which is obviously not desirable.
The British Parliament is able to lower the VAT on eBooks to 0% (to match paper books), but when or if it does that is a matter for them to decide.