MobileRead Forums - View Single Post - ECJ Rules that Ebooks must have standard VAT rate

pdurrant · 03-08-2015, 01:48 PM

Way back in 2012, Luxembourg and France dropped the VAT rate they charged on ebooks from the standard rate to the reduced rate (17% -> 3% in Luxembourg and 20% -> 5% in France).

The European Comission ruled against them in 2013, but they appealed to the European Court of Justice.

The European Court of Justice has now ruled that they are not allowed to charge the reduced, as ebooks must be classified as electronically supplied services, not as books, and so are ineligible for the reduced rate.

This is unfortunate, but expected - the relevant laws are pretty clear. It is to be hoped that the relevant EU laws can be changed, but even if they are, it will take some time.

Thanks to Ink, Bits & Pixels for the info that the judgement had been rendered.

03-08-2015, 01:48 PM	#1
pdurrant The Grand Mouse 高貴的老鼠 Posts: 73,701 Karma: 315126578 Join Date: Jul 2007 Location: Norfolk, England Device: Kindle Oasis	ECJ Rules that Ebooks must have standard VAT rate Way back in 2012, Luxembourg and France dropped the VAT rate they charged on ebooks from the standard rate to the reduced rate (17% -> 3% in Luxembourg and 20% -> 5% in France). The European Comission ruled against them in 2013, but they appealed to the European Court of Justice. The European Court of Justice has now ruled that they are not allowed to charge the reduced, as ebooks must be classified as electronically supplied services, not as books, and so are ineligible for the reduced rate. This is unfortunate, but expected - the relevant laws are pretty clear. It is to be hoped that the relevant EU laws can be changed, but even if they are, it will take some time. Thanks to Ink, Bits & Pixels for the info that the judgement had been rendered.