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Originally Posted by thewitt
Italy just changed the rules again, but it seems they at least are differentiating Digital Services, which will not have an ISBN, from eBooks, which will. Nice.
Lastly, as of January 1, 2015, Italy has put in place a new law. Applicable VAT for eBooks sold in Italy will depend on whether the book has an ISBN. All eBooks with an ISBN will have a 4% VAT rate and eBooks without an ISBN will have a 22% VAT rate. This is the rate that is added to your price on January 1st and is the rate deducted when an Italian customer purchases your book. If you obtain an ISBN after January 1st, the 4% VAT rate will then apply for future sales but we will not adjust your list price automatically.
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This is interesting, and unless the rules change before they can get to it, Italy will also be taken to court by the EU.
But it is an clever and definite way to distinguish between ebooks and digital services.