Quote:
Originally Posted by Direct Ebooks
Another point to bear in mind is that in Europe, VAT tax is applied on eBooks at up to 21% which is significant.
This adds greatly to the retail price of eBooks.
Even now, because of this, many of us retailers are down to to about 20/25% of the rrp.
Thats before discounts.
Retailers are also charged a fulfillment fee by adobe etc to deliver the eBook to the customer.
I'm not complaining - just pointing out some hidden factors and costs.
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ebooks are in the high VAT rate, yes.
Quote:
Originally Posted by neilmarr
I'm no UK tax expert, DE; but I read somewhere recently that that 21% VAT is applied to sales of purchased 'goods'. If an ebook is merely licenced, it should be taxed as a 'service' at 6%. This right? Cheers. Neil
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It's the other way around actually. Books have the low VAT rate (which is 0% I believe in the UK), while ebooks are actually "services" and thus have the high VAT rate.
Strange situation:
I go to a store, buy an audiobook on CD.
Price: 10 + 6% VAT = 10,60 euro.
I go to a webstore and buy exactly the same audiobook on MP3 (aka, download it)
Price: 10 + 19% VAT = 11,90 euro.