VAT and books in the UK.

garygibsonsf · 09-07-2008, 01:16 AM

I had no idea until a few days ago that ebooks sold through businesses located in the UK were required to charge Value Added Tax at 17.5%. Paper books, magazines and newspapers sold in the UK are sold without VAT; but apparently ebooks are placed under the umbrella as other 'digitised products', making them (I assume) legally no different from any other piece of software such as a computer game or word processor.

I have a vague recollection that one of the reasons there is no VAT on books in the UK is that it was felt it would be wrong to tax knowledge; that 'knowledge' in the form of books should be made affordable to all.

Assuming that I have this right, then shouldn't it be the case (obviously I'm directing this at people in the UK, especially ones who aren't nearly as clueless about taxes and the like as I am) that ebooks should also be exempt from VAT, given that they have ISBN's which are, to my knowledge, only applied to books? And does this mean that UK law has failed to keep up with the advent of digital books?

HarryT · 09-07-2008, 03:53 AM

eBooks are classified as "computer software", and hence liable for VAT.

Best to buy your e-books from US stores.

TomBolini · 09-07-2008, 04:09 AM

The same occurs all over UE countries: a UE regulatory norm specifies that ebooks have to be considered "informatic services", not books, and submitted to the standard VAT. Here in Italy, for instance, we've to apply 20% VAT.
Ironically national laws normally consider ebooks being real books to sumbit them to the (crazy) mandatory deposit to public libraries laws.

09-07-2008, 01:16 AM	#1
garygibsonsf Addict Posts: 321 Karma: 432192 Join Date: Dec 2007 Location: Glasgow, Scotland Device: Amazon Kindle Paperwhite	VAT and books in the UK. I had no idea until a few days ago that ebooks sold through businesses located in the UK were required to charge Value Added Tax at 17.5%. Paper books, magazines and newspapers sold in the UK are sold without VAT; but apparently ebooks are placed under the umbrella as other 'digitised products', making them (I assume) legally no different from any other piece of software such as a computer game or word processor. I have a vague recollection that one of the reasons there is no VAT on books in the UK is that it was felt it would be wrong to tax knowledge; that 'knowledge' in the form of books should be made affordable to all. Assuming that I have this right, then shouldn't it be the case (obviously I'm directing this at people in the UK, especially ones who aren't nearly as clueless about taxes and the like as I am) that ebooks should also be exempt from VAT, given that they have ISBN's which are, to my knowledge, only applied to books? And does this mean that UK law has failed to keep up with the advent of digital books?

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09-07-2008, 03:53 AM	#2
HarryT eBook Enthusiast Posts: 85,544 Karma: 93383099 Join Date: Nov 2006 Location: UK Device: Kindle Oasis 2, iPad Pro 10.5", iPhone 6	eBooks are classified as "computer software", and hence liable for VAT. Best to buy your e-books from US stores.

09-07-2008, 04:09 AM	#3
TomBolini ebooks distributor Posts: 34 Karma: 197 Join Date: Aug 2006 Location: Loreto, Italy Device: HP2710p iLiad Cybook Sony 505 Kindle DR1000S	The same occurs all over UE countries: a UE regulatory norm specifies that ebooks have to be considered "informatic services", not books, and submitted to the standard VAT. Here in Italy, for instance, we've to apply 20% VAT. Ironically national laws normally consider ebooks being real books to sumbit them to the (crazy) mandatory deposit to public libraries laws.