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.