Reducing VAT on e-boooks, to match printed books rates

[Apache]

Some cities and counties have a separate sales tax. Atlanta, Georgia charges a city sales tax. The money is paid to the state and they disburse it to the city. Also, a percentage of the sales tax collected in each county is returned to that county. The county then has to disburse a percentage to each city and town in the county based on population. The city and county I live in had a dispute over how much money the city received from the county. It ended up in a lawsuit.
In Georgia the residents can also vote on special-purpose local-option sales taxes (SPLOST). If the SPLOST passes the taxes in that county go up 1%. The money collected can only be used for funding the building of parks, schools, roads, and other public facilities. They also are in effect for a specific period of time after which tthey expire. Last year our county passed one to fund upgrades to the local airport Air Traffic Control Tower.
Apache

[ZodWallop]

Originally Posted by JSWolf

How can removing VAT bother the publisher? They will still get the exact same profit.

It just depends on your point of view. If the publishers set the prices (VAT included) to closely match the US price, then now that VAT is no longer charged, they can sell for the same price and they make more money on it.

A positive way to look at it is now indies have a chance to make more money without raising their prices.

I dunno. Maybe they should change their prices. Are ebooks more expensive at the UK store than the US store? Stephen King's If It Bleeds is 10.99, which even with conversion is cheaper than it is at the US store. The Last Policeman is 1.42. Cheaper than the $1.99 in the US store. The Grapes of Wrath is 4.99 which is a very good deal against our $14.99. I pulled up several Harlan Coben books and all were cheaper in the UK.

[DNSB]

Originally Posted by AnotherCat

In NZ GST is applied to essentially every common good and service except financial transactions (so one does not pay GST on purchases of company shares, for example); nor on second hand goods in order to avoid multiple taxing of the same good through its useful life (so a house buyer pays GST on a house just built, but not on second hand houses). GST fraud in NZ is very low and there is little chance of evasion by wrongly categorizing goods; and there is a very high level of acceptance here that this is the way it should be. Australia exempts some goods, mainly basic foods (there may be others, but foods serves this example) which muddies the waters as it can be unclear or contorted to be unclear as to what category the good is in.

In Canada, GST can get a little weird. Basic groceries are GST exempt but if I buy one of a prepared food product, it's GST taxable while buying 6 of them makes the purchase GST exempt (single use vs. multiple use). A uncooked chicken is not taxable while a rotisserie chicken is. Milk at the grocery store is not taxed but the same container of milk at McDonald's is taxed.

[JSWolf]

Originally Posted by ZodWallop

It just depends on your point of view. If the publishers set the prices (VAT included) to closely match the US price, then now that VAT is no longer charged, they can sell for the same price and they make more money on it.

A positive way to look at it is now indies have a chance to make more money without raising their prices.

I dunno. Maybe they should change their prices. Are ebooks more expensive at the UK store than the US store? Stephen King's If It Bleeds is 10.99, which even with conversion is cheaper than it is at the US store. The Last Policeman is 1.42. Cheaper than the $1.99 in the US store. The Grapes of Wrath is 4.99 which is a very good deal against our $14.99. I pulled up several Harlan Coben books and all were cheaper in the UK.

There is no positive way to look at this. The UK government did away with VAT for eBooks so they would be cheaper for consumers to purchase. At Amazon this is not happening with the major publishers. Basically, Amazon made a crappy deal and now the major publishers get to screw their customers. Well done Amazon.

[ZodWallop]

Originally Posted by JSWolf

There is no positive way to look at this.

Never let it be said that you don't fairly asses both sides of an argument before reaching a decision.

now the major publishers get to screw their customers. Well done Amazon.

And how do you explain indie books?

[j.p.s]

Originally Posted by ZodWallop

Never let it be said that you don't fairly asses [sic] both sides of an argument before reaching a decision.

My '[sic]'.

[JSWolf]

Originally Posted by ZodWallop

Never let it be said that you don't fairly asses both sides of an argument before reaching a decision.



And how do you explain indie books?

Indie books that show a VAT reduction are not from a major publisher. You know, the price fix six.

[AnotherCat]

Originally Posted by DNSB

In Canada, GST can get a little weird. Basic groceries are GST exempt but if I buy one of a prepared food product, it's GST taxable while buying 6 of them makes the purchase GST exempt (single use vs. multiple use). A uncooked chicken is not taxable while a rotisserie chicken is. Milk at the grocery store is not taxed but the same container of milk at McDonald's is taxed.

That is very much like Australia too.

There are periodically interest groups here in NZ who want exemptions on basic foods (as to what is a basic food depends on who one asks) but has never got any traction with either most consumers or the Government. We have only ever had GST increases here (twice, was 10% originally, to 12.5%, to 15%) and surprisingly to me (I being market oriented ) the general public seemed to think it was quite alright for suppliers to put their prices up to cover it - of course the suppliers were very happy with that.

[Quoth]

Originally Posted by JSWolf

There is no positive way to look at this. The UK government did away with VAT for eBooks so they would be cheaper for consumers to purchase.

Actually mostly typical Conservative PR because it's a small amount of tax and an anomaly as books are zero.
There was a long time fuss about the fact of essential female hygiene products having VAT. Far more serious.
Also see Jaffa Cake VAT case.

The biggest issue is the Big Publishers charging the SAME for ebooks as Supermarket Mass Market paperbacks. Also books going out of print. Even quite recent ones, yet the POD cost is about 1/4 of the typical retail book outside of the supermarket.

[JSWolf]

Originally Posted by Quoth

Actually mostly typical Conservative PR because it's a small amount of tax and an anomaly as books are zero.
There was a long time fuss about the fact of essential female hygiene products having VAT. Far more serious.
Also see Jaffa Cake VAT case.

The biggest issue is the Big Publishers charging the SAME for ebooks as Supermarket Mass Market paperbacks. Also books going out of print. Even quite recent ones, yet the POD cost is about 1/4 of the typical retail book outside of the supermarket.

Whatever the reason for eBooks to have VAT dropped means they should now be cheaper. They should not be the same price with VAT and without VAT. So any reason for eBooks to be the same price with and without VAT is pure BS and needs to stop. eBooks need to be the correct price at all UK retailers. And that correct price is VAT price minus VAT. So a £7.99 (with VAT) eBook should be sold for £6.66 at ALL retailers in the UK.

[pdurrant]

As I may have mentioned, I have a magazine renewal coming up in a few days. I think I'll cancel it and re-subscribe when things have settled down a little. It's every two months, so I won't miss an issue (the latest one came out on 1st May).

I'm also going to hold off on any non-special offer purchases.

Amazon have already told the Guardian that special offers will not be reduced (i.e. the £0.99 daily deals will remain £0.99 )

[stumped]

Originally Posted by pdurrant

As I may have mentioned, I have a magazine renewal coming up in a few days. I think I'll cancel it and re-subscribe when things have settled down a little. It's every two months, so I won't miss an issue (the latest one came out on 1st May).

I'm also going to hold off on any non-special offer purchases.

Amazon have already told the Guardian that special offers will not be reduced (i.e. the £0.99 daily deals will remain £0.99 )

can you find any reader comments on that guardian article. I can't but they may be an interesting read, if they are allowing comments

[murraypaul]

Originally Posted by JSWolf

At Amazon this is not happening with the major publishers. Basically, Amazon made a crappy deal and now the major publishers get to screw their customers. Well done Amazon.

This is no different at Kobo UK, but you are choosing to ignore that, I notice.

[theducks]

Originally Posted by JSWolf

VAT isthe same thing as sales tax. The only difference is that VAT is the same for the entire UK unlike the US where sales tax can be different for different states.

No it is not.
VAT is added AT every step of the way, Manufacturer, wholesaler, retailer

Sales Tax is charged to the customer bases on the sale price.

Many states in the USA Have a 'State' sales tax.
Some, like Arizona, have a County level additional tax
Some, like California and Washington also have a CITY/Town additional tax rate.
(I cite these only because I had Tax ID's for filing)

For a USA retailer, this can be a nightmare.
Unlike the Simple: Food, Labor and all else.
there are specific exceptions or conditions.
CA has a 'Twinkie Tax'. A Sheet cake is Food (no tax). A slice of cake is a snack (taxed) A raw fish is food. Cook that fish and it is 'take out' (taxed).
AZ had so many different kinds of items taxed at the county level ONLY by some jurisdictions.

As a former Internet merchant, I applaud the European (and Canada) SIMPLE VAT method as opposed to the hodge-podge USA sales tax chaos.

[JSWolf]

Originally Posted by murraypaul

This is no different at Kobo UK, but you are choosing to ignore that, I notice.

I did mention it in one of the two threads on VAT. Also, I've mentioned that ebooks.com is doing the VAT free properly.