Non-US Kindle wireless delivery charge dropped

[pdurrant]

Originally Posted by HarryT

To clarify Paul's statement:

In the UK, as in the rest of the EU, eBooks are charged the "standard" rate of VAT, in accordance with the EU's eCommerce VAT directive. This is the law throughout the EU.

Thanks HarryT - I missed an 'e' out.

[Sweetpea]

Originally Posted by pdurrant

They are, of course, still adding VAT (in the EU), but this is usually small for most books compared to the $2+VAT fee previously added to the cost of every book.

That VAT fee is bull*****. We pay 19% VAT here. But, last I checked, $0x19% = $0 and not $2,30. So, why should we pay VAT over something that is free?


oh, want an example?

The Last Song: Exclusive Free Kindle Content (Kindle Edition)
Kindle Price: $2.30

[lene1949]

I have noticed the 'free' books advertised doesn't attract the $2 fee anymore... I thought it was a mistake on Amazon's part, as it happened since the roll-out of 2.5..

I checked a few book advertised on MR yesterday and today for $0.99, but to me they are still an extra $2 for the wireless delivery..

[pdurrant]

Originally Posted by Sweetpea

That VAT fee is bull*****. We pay 19% VAT here. But, last I checked, $0x19% = $0 and not $2,30. So, why should we pay VAT over something that is free?


oh, want an example?

The Last Song: Exclusive Free Kindle Content (Kindle Edition)
Kindle Price: $2.30

Examples help. In the UK store, The Last Song is indeed $0.

Obviously the remeoval of the $2 charge hasn't rolled out everywhere yet.

[pdurrant]

Originally Posted by lene1949

I have noticed the 'free' books advertised doesn't attract the $2 fee anymore... I thought it was a mistake on Amazon's part, as it happened since the roll-out of 2.5..

I checked a few book advertised on MR yesterday and today for $0.99, but to me they are still an extra $2 for the wireless delivery..

Hopefully a temporary glitch in their roll-out of the removal of the $2 fee. In the UK store $0.99 books are indeed $1.16. ($0.99 + 17.5% VAT)

e.g. Thin Blood by Vicki Tyley

[K-Thom]

In this case, that's a little unfair. All EU countries have to charge the full VAT rate in that country for eBooks; they have no say in the matter; it's required by the EU's "eCommerce VAT directive", which all EU member states have to obey.

Harry, that's only true insofar that eBooks generally are treated as software. Were they treated as books (which is up to each own country's decision), they could very well go for the reduced VAT.

Printing lobby at its best. "Ceci n'est pas un book", yeah sure ...

[HarryT]

Originally Posted by K-Thom

Harry, that's only true insofar that eBooks generally are treated as software. Were they treated as books (which is up to each own country's decision), they could very well go for the reduced VAT.

My understanding is that this is an EU ruling; the individual country does not have the choice. Spain recently attempted to apply a lower rate of VAT to eBooks; the EU objected, and they were not permitted to do so.

[K-Thom]

Yep, semingly. Quite interesting since I never heard the EU generally defining eBooks as "software". Does anyone know if there is any official EU note clarifying this?

[HarryT]

It's covered by the EU e-commerce VAT directive, which says that all downloadable data has to be charged at the standard rate of VAT. This was originally brought in to ensure that VAT was charged on music downloads; eBooks just happen (unfortunately) to fulfill the same criteria.

[Sweetpea]

Originally Posted by pdurrant

Examples help. In the UK store, The Last Song is indeed $0.

Obviously the remeoval of the $2 charge hasn't rolled out everywhere yet.

I followed your link...


My country/region is Europe.

[Logseman]

What Harry said is correct.

If I recall properly, eBooks are not subject to low VAT in the EU because they're not considered a purchase but an electronically rendered commerce service, and e-commerce can't have its VAT reduced. So if your local politician says it's all the EU's fault, she's right this time.

[Mike L]

Originally Posted by DawnFalcon

Yes, I believe if you're a VAT registered business you have to report your total sales of 0% VAT products, even though there's nothing to pay on them.

That's correct. More importantly, if you are VAT-registered but you only sell zero-rated goods, you can still reclaim the tax on all your inputs. Good for bookshops.

Originally Posted by DawnFalcon

The UK government is as usual Luddite on eBook VAT...

If you are referring to the fact that the UK government charge VAT on eBooks ... well, I dislike that as much as you do, but you can't specifically hold that against the UK. Every other European government does the same.

In fact, the UK is more favourable than most other countries in that it doesn't charge VAT on paper books.

[Mike L]

Originally Posted by Logseman

If I recall properly, eBooks are not subject to low VAT in the EU because they're not considered a purchase but an electronically rendered commerce service, and e-commerce can't have its VAT reduced. So if your local politician says it's all the EU's fault, she's right this time.

Perhaps. But the EU don't mandate the VAT rates, or even decide which products or services fall within the scope of VAT. That's up to the member states. (Although it might be the EU that decide the composite rate for electronic imports from outside the EU; not sure about that.)

Also, not all countries that operate VAT are even in the EU.

[Mike L]

Originally Posted by Sweetpea

But, last I checked, $0x19% = $0 and not $2,30. So, why should we pay VAT over something that is free?

I don't know how things work where you are. Here, the system is that if you give something away as part of a commercial transaction, the free item is subject to VAT on its market value.

You could of course argue that the market value of a public domain ebook is zero. It does seem odd.

[fastesthamster]

Originally Posted by pdurrant

Examples help. In the UK store, The Last Song is indeed $0.

Obviously the remeoval of the $2 charge hasn't rolled out everywhere yet.

That book is still $2 in South Africa...