Britain INCREASES tax on ebooks

[omk3]

Originally Posted by Kali Yuga

However, I find it rather amusing that an "ebook is just a book" whenever classifying it that way means a lower cost for the punters. Of course, if a publisher says it's going to charge the same for an ebook as a paper book, mass hysteria ensues because "ebooks are not the same as books...."

When I say that an ebook or an audiobook is just a book in this context, I assume that the government has made books exempt from VAT because of their educational value, making them more accessible to all. In that respect, where only the content counts, paper books (paperbacks or hardcovers), audiobooks and ebooks should be one and the same.

As for the actual price issue, I'm assuming that the cost to produce and distribute a material object (other than what the writer's and editor's work is worth) would be more than creating and distributing a digital object, so I expect the extra cost to be carried in the price of the material object but not the digital one.

[HarryT]

The individual government has no say in the matter here. This is EU law, which member states are obliged by treaty obligations to implement. Governments can (and do) have lower (or, in the UK's case, zero) rates of VAT for paper books; they are not allowed to do so for ebooks. As you may recall, Spain recently attempted to do so; the action was ruled to be illegal by the European Commission and they were forced to withdraw the change.

[J. Strnad]

I believe the rationale for taxing ebooks and not print books is that print books can be hurled at politicians, thus giving them a social value that ebooks lack.

I could be wrong.

[Sweetpea]

The VAT in ebooks is the high level because it's a download service. Not a good. But, what if you buy an ebook on a touchable media, such as an USB stick/memory card/CD?

Here, in the Netherlands, there's a shop that sells books on USB sticks (just started). They should fall under the low VAT rate, as they are actual physical media...

[neilmarr]

Whatever the red-tape excuses, it's another impediment to reading at a time when standards of literacy are falling alarmingly. I wonder if any allowance will be made for 'educational' text books and course work. Neil

[Iphinome]

Originally Posted by J. Strnad

I believe the rationale for taxing ebooks and not print books is that print books can be hurled at politicians, thus giving them a social value that ebooks lack.

I could be wrong.

So you mean bookclub uses.... book club..... you bludgeon someone with it.... Well it's funny when said out loud. Yes it is. Why are you looking at me like that?

[Sweetpea]

Originally Posted by neilmarr

Whatever the red-tape excuses, it's another impediment to reading at a time when standards of literacy are falling alarmingly. I wonder if any allowance will be made for 'educational' text books and course work. Neil

Yes, books for study and audiobooks have the low VAT rate...

(not sure if it only goes for books that are on physical media, though...)

[lila55]

Originally Posted by J. Strnad

I believe the rationale for taxing ebooks and not print books is that print books can be hurled at politicians, thus giving them a social value that ebooks lack.

I could be wrong.

[Hadel]

Originally Posted by garygibsonsf

In a fairly shock move discussed at the link below, the new 'emergency budget' raises VAT on ebooks (and also audiobooks) to 20%, which I'm sure will piss off many UK readers who frequent this forum, myself included.

http://www.thebookseller.com/news/12...off-books.html

I admired UK because the government made the access to the state museums free of charge.
But raising the tax on books is clearly working against your nation's future!

[Roger Parkinson]

It seems a shame. But this is what they are thinking:
1) the economy is screwed
2) anyone with an eReader must have money
3) tax them
You could probably substitute eReader with other things: car, house, puppy, clothing
But eReader is the relevant thing here.

[GeoffC]

Originally Posted by J. Strnad

I believe the rationale for taxing ebooks and not print books is that print books can be hurled at politicians, thus giving them a social value that ebooks lack.

I could be wrong.

is that also the reason why very ripe fruit/veg & eggs are vat - free .....

[murraypaul]

Originally Posted by Roger Parkinson

It seems a shame. But this is what they are thinking:
1) the economy is screwed
2) anyone with an eReader must have money
3) tax them
You could probably substitute eReader with other things: car, house, puppy, clothing
But eReader is the relevant thing here.

No, the original post is misleading. eReader is completely irrelevant.
They haven't raised the tax on eBooks, they have raised the tax on everything.
Do you seriously think they've been sitting down considering what to do about eBooks? They've been a bit busy cutting spending by 25%.

[Cookie Monster]

Originally Posted by Roger Parkinson

It seems a shame. But this is what they are thinking:
1) the economy is screwed
2) anyone with an eReader must have money
3) tax them
You could probably substitute eReader with other things: car, house, puppy, clothing
But eReader is the relevant thing here.

Its not exactly a crippling tax increase. An ebook that costs £20 will increase to £20.43 in January.

[GeoffC]

That's the way to look at all items that will attract the increase - on individual items (even a car) it's really only a small amount of the price.

[HarryT]

Originally Posted by murraypaul

No, the original post is misleading. eReader is completely irrelevant.
They haven't raised the tax on eBooks, they have raised the tax on everything.
Do you seriously think they've been sitting down considering what to do about eBooks? They've been a bit busy cutting spending by 25%.

Yes, that was my point when I said that I felt that the original post was misleading - it made it sound as though this was a tax increase specifically on eBooks.