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Reduced VAT Rates For e-books Moves A Step Closer


The EU Economic and Monetary Affairs Committee has voted by a majority of 48 to 1 to back the EU Commission proposal for e-books to be subject to the reduced rate of VAT. The Supply of physical books may be subject to the reduced rate of VAT (including a zero rate in some countries, like the UK) but the standard rate applies to e-books. The EU’s rapporteur Tom Vandenkendelaere stated after the vote that “Our way of reading has changed rapidly over recent years. Now, it makes no sense to apply a double standard whereby an online newspaper is taxed higher than a printed one you buy in a shop. This new directive will give Member States the option to align VAT on digital content with printed matter,” The proposal will move to its final step before being implemented after a vote takes place shortly.