EU council allows VAT-free status for ebooks and audio books
The European Union’s (EU) Economic and Financial Affairs Council (ECOFIN) has agreed to allow all member states to give ebooks and audiobooks the same value-added tax (VAT) status as printed books, reports the Bookseller.
While the new rules do not compel EU member states to align the ebook and print book rates, it would mean a 20% reduction in the tax currently applied to digital publications if they choose to do so.
The European Commission said the decision, first proposed almost two years ago, would allow digital publication VAT rates to align with the ‘more favourable regime’ currently in place for printed publications.
‘Today’s decision is the final step to ensure that the unequal treatment of the two products—paper versus digital—becomes a thing of the past,’ said the Commission.
Read more at Books+Publishing.