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VAT on e-books

Community Veteran
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Registered: 24-09-2008

VAT on e-books

Just heard announced that Luxemburg is to lower the VAT on ebooks to 3% (no link yet), France looks like it will lower it’s VAT rate on ebooks in the new year.
Seeing no packaging actually changes hands (it is all done electronically) have the respective governments ‘cashed in’ on the international e-book Market (and broken EU Laws).
(In EU VAT is levied at the point of origin, not the point of delivery, until 2016 when VAT in Europe reverts to point of delivery)
If Osborn cut VAT to 1% on anything delivered electronically to Europe (Computer software, computer Games, ebooks) would the exchequer make a killing?
edit: point of sale is confusing, changed to point of origin
5 REPLIES
Community Veteran
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Registered: 15-06-2007

Re: VAT on e-books

I thought I read somewhere that changing the VAT level for specific types of items was forbidden under EU regulations - will dig around and post if I find anything
EDIT - found it www.parliament.uk/briefing-papers/SN02683.pdf and they can't
Community Veteran
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Re: VAT on e-books

@Oldjim:- that is the point, it is forbidden under EU regulations!
Community Veteran
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Registered: 15-06-2007

Re: VAT on e-books

http://www.thebookseller.com/news/uk-government-holds-firm-e-book-vat.html
http://www.kpmg.com/global/en/issuesandinsights/articlespublications/taxnewsflash/pages/luxembourg-r...
Quote
Also, this approach follows discussions held at a European Union-level, in particular a 6 December 2011 communication [COM (2011) 851 final] providing that “…similar goods and services should be subject to the same VAT rate and progress in technology should be taken into account in this respect, so that the challenge of convergence between the on-line and the physical environment is addressed.
Seems reasonable
Community Veteran
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Re: VAT on e-books

Doubt the exchequer will make much money from me irrespective of what the Vat rate is on e-books as the most expensive ones I have ever downloaded have never cost more than 99 pence and the majority have been free.
The cost of a book and the enjoyment or use you get out of it bears no resemblance to the price. 
Community Veteran
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Registered: 21-03-2011

Re: VAT on e-books

They charge VAT on downloaded software - what is the difference for books?  Both are knowledge products.
Now Zen, but a +Net residue.