UK e-book prices to rise from 1st January 2015

[pdurrant]

Originally Posted by HarryT

I agree with you entirely, but it needs to change at the EU level; national governments can't make the change. Hence my earlier remark that there was little point in talking to the government about it.

Luxembourg and France have charged their lower rate of VAT on ebooks for three years now. The case is still going through the EU courts.

The UK government could decide to charge 0% VAT on ebooks. But they would (eventually!) get taken to the EU courts about it.

There are some moves in the EU to get audiobooks and ebooks reclassified so that countries can apply their reduced VAT rates to them. I hope that happens at some point.

[BearMountainBooks]

Originally Posted by HarryT

It has little to do with our government. VAT rules are set by the EU, not national governments.

Our 20% VAT rate is in the mid-range. Some are lower, some are higher, but 20% is typical.

From my limited understanding the local governments have to agree to that EU stuff. It isn't like they just get to willy nilly slam in on all of them. 20 percent tax on anything is very high.

And yes, it really does affect us authors. Not only is it one more thing we have to keep track of at various retailers (how to price our books--I have to price with vat at Amazon, but without it at Kobo, but with it at Smashwords, etc) it's also a deterrent to buying books and that is NEVER good!

[HarryT]

Originally Posted by BearMountainBooks

From my limited understanding the local governments have to agree to that EU stuff. It isn't like they just get to willy nilly slam in on all of them.

EU directives (which this is) are legally binding on all member states. Each national government has to pass the appropriate law in its own country to enforce it, which they are obliged to do by the treaty they signed to join the EU.

[BearMountainBooks]

Originally Posted by HarryT

EU directives (which this is) are legally binding on all member states. Each national government has to pass the appropriate law in its own country to enforce it, which they are obliged to do by the treaty they signed to join the EU.

So leave it. If the rules become onerous (or the taxes) the benefit to the country and its citizens should change. It's still the "local" governments that have to make the change.

Of course politicians love to say their hands are tied...it's either 'the other party" as the excuse or 'our hands are tied.'

[pdurrant]

Originally Posted by BearMountainBooks

From my limited understanding the local governments have to agree to that EU stuff. It isn't like they just get to willy nilly slam in on all of them. 20 percent tax on anything is very high.

General discussion of the merits of VAT and sales tax rates should be kept to the P&R forum please.

Here we're only discussing the rates of VAT as applied to paperbooks and ebooks, and in particular the changes that came in on 1st January 2015.

[BearMountainBooks]

Originally Posted by pdurrant

General discussion of the merits of VAT and sales tax rates should be kept to the P&R forum please.

Here we're only discussing the rates of VAT as applied to paperbooks and ebooks, and in particular the changes that came in on 1st January 2015.

Oh sorry. I only meant that as a general comment. My dismay is probably too personal as it affects sales.

[pdurrant]

Originally Posted by BearMountainBooks

Oh sorry. I only meant that as a general comment. My dismay is probably too personal as it effects sales.

That's OK, I just don't want a political discussion about tax rates in the general forums, and this topic might well veer that way if we're not careful.

[Josieb1]

Originally Posted by BearMountainBooks

Oh sorry. I only meant that as a general comment. My dismay is probably too personal as it affects sales.

I feel for you as it affects the number of books I can buy. Literally where I could buy 6 I can only buy 5 now

[BearMountainBooks]

Originally Posted by Josieb1

I feel for you as it affects the number of books I can buy. Literally where I could buy 6 I can only buy 5 now

I wonder if price increases/additional taxes will convince some people to start joining subscription services like SCRIBD...

[Josieb1]

Originally Posted by BearMountainBooks

I wonder if price increases/additional taxes will convince some people to start joining subscription services like SCRIBD...

I mainly buy from Dreamspinner Press, if they as a publisher joined a subscription service I'd be tempted.

[Terisa de morgan]

Originally Posted by BearMountainBooks

I wonder if price increases/additional taxes will convince some people to start joining subscription services like SCRIBD...

While they only allow me to read at a tablet with their own apps, no.

[BearMountainBooks]

Originally Posted by Terisa de morgan

While they only allow me to read at a tablet with their own apps, no.

I have a sub at SCRIBD and that's the one thing that bothers me as well. I have to read on my laptop and I don't enjoy that.

[Fbone]

Originally Posted by HarryT

Use Tax? In most US states, if you buy a product for use or consumption in your state, you are obliged to pay your state's rate of sales tax on it if you have not already paid the sales tax in another US state.

Of course, many people don't pay the tax, but that doesn't make it any the less a legal obligation to do so.

This is correct. Since I'm "returning" to the US with the ebook, I am required to pay 7% Use/Sales tax.

One last thing. I don't have to pay use tax on VAT if the receipt is itemized showing the amount of VAT paid (some tourist areas do this). If the price includes VAT as it generally does then I must pay tax on the tax.

[tompe]

Originally Posted by Fbone

This is correct. Since I'm "returning" to the US with the ebook, I am required to pay 7% Use/Sales tax.

One last thing. I don't have to pay use tax on VAT if the receipt is itemized showing the amount of VAT paid (some tourist areas do this). If the price includes VAT as it generally does then I must pay tax on the tax.

So you actually pay it voluntarily? I mean when you use false information to buy the book why do you not accept falsehood and not pay the tax?

[Fbone]

Originally Posted by tompe

So you actually pay it voluntarily? I mean when you use false information to buy the book why do you not accept falsehood and not pay the tax?

When I wrote "One last thing" I meant it