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EU to lower VAT rates on electronic books, newspapers and publications

Author: Richard Asquith Published on: 2 October 2018 Published in: EU

e-book VAT rate harmonised with paper equivalents

The Council of the European Union has today agreed to permit member states to reduce the Value Added Tax rates on income from e-books and electronic publications. Previously, only printed books and press listed in Annex III of the EU VAT Directive could enjoy reduced VAT rates.

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Directive modified until Definitive VAT System implemented

The directive will allow member states that so wish to apply reduced VAT rates to electronic publications as well. Super-reduced and zero rates will only be allowed for member states that currently apply them to ‘physical’ publications.

The new rules will apply temporarily, pending the introduction of a new, definitive VAT system. The Commission has issued proposals for the new system, which would allow member states more flexibility than at present in setting VAT rates.

EU VAT reforms

	Reform (click for details)	Update
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2030?	Digital Reporting Requirements and e-invoicing harmonisation	Likely delay to 2030
	Structured e-invoices supercede paper invoices	Likely delay to 2030
	EC Sales lists replaced by Digital Reporting Requirements	Likely delay to 2030
2028	EU Customs reforms	Published May 2023
	€150 import consignment threshold removed	Published May 2023
2026	DAC8 harmonised crypto asset reporting	Approved May 2023
2025	VAT registration thresholds equivalence foreign businesses	1 Jan 2025
	Virtual events VAT rule changes	1 Jan 2025
	Single VAT Registration in the EU - extension of OSS	Likely delay to 2026
	Marketplace deemed supplier extended to EU sellers	Likely delay to 2026
	Proposal for VAT treatment of the platform economy	Likely delay to 2026
	EU IOSS mandated for marketplaces	Likely delay to 2026
	Call-off stock VAT simplification ends	Likely delay to 2026
	Harmonisation of B2B Reverse Charge rules	Likely delay to 2026
	Financial Services VAT exemption reform proposals	Consultation complete; proposal awaited
	Tour operator margin scheme VAT reforms	EC undertaking fresh review
2024	Payment providers' seller transaction reporting and bookkeeping obligations	In effect since 1 Jan 2024
2023	DAC 7 - marketplace reporting harmonisation	In effect since 1 Jan 2024
2022	IOSS reforms to prevent double taxation	On hold
	EU reduced VAT rate freedoms	Entered into force 6 April 2022
	VAT in the Digital Age proposals	Published Dec 2022
	EU DAC8 cryptocurrency tax reporting proposals	Published Dec 2022
	VAT Gap Initiative	Q3 2022
	EU Definitive VAT System	On hold
2021	One-Stop-Shop (OSS) single EU VAT return	In effect since 1 July 2021
	Ending €22 import VAT exemption; new IOSS return	In effect since 1 July 2021
	Marketplace deemed supplier EU VAT reforms	In effect since 1 July 2021
2020	EU four Quick Fixes for VAT	In effect
	Tax authorities anti-VAT fraud cooperation	In effect
	Tax Action Plan - 25 VAT and other tax reforms roadmap	See 'VAT in the Digital Age' and others
2019	Simplification of e-services VAT compliance and thresholds	In effect
	Single and multi-use vouchers	In effect
2018	Lower e-book and publications VAT rates	In effect, although not all EU states have adopted the option

Richard Asquith

editor

Richard is a frequent contributor to international VAT and GST debate and public policy consultations. Prior to VAT Calc, he helped establish and grow two tax tech businesses. He started his career with the 'Big-4', working with KPMG and EY in the UK, Hungary, Russia and France