No reduced tax rate for ebooks, top EU court rules

E-books must be subject to the full rate of value-added tax (VAT), and European Union countries may not extend tax exemptions for books to include ebooks, the EU’s highest court ruled Thursday, adding that it considers downloadable ebooks to be services.Most EU member states, with the exception of Bulgaria and Denmark, impose a lower rate of VAT on physical books than on other products and services. The lower rate for books is one of a limited number of exemptions allowed under the EU’s VAT Directive.In January 2012, France lowered the VAT rate on ebooks to 5.5 percent, and Luxembourg to 3 percent, matching the rates they levied on paper books. The European Commission asked the Court of Justice of the European Union (CJEU) to rule that the move breached the VAT Directive.To read this article in full or to leave a comment, please click here Continue reading at 'PC World'

[ PC World | 2015-03-05 00:00:00 UTC ]
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