Quote:
Originally Posted by HarryT
Other than the fact the you appear to believe that server farms cost nothing to run (a false assumption), there are other factors that you are failing to take into account, such as the fact that, within the EU, eBooks have, by law, to be subject to the standard rate of VAT for each country, whereas paper books can be discounted. Thus, in the UK, for example, paper books are zero rated for VAT, whereas eBooks are subject to VAT at 20%. When an eBook is priced the same as a paper book in the UK it is actually only 83% of the price, as far as the underlying cost is concerned.
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[nitpick] Because of the interesting way non-EU companies have to register for EU VAT, Amazon only has to charge 15% VAT on the ebooks it sells anywhere inside the EU.