European Court Rules Ebooks Aren’t Goods

EU european union ebooks vat e-commerceEbook readers in the European Union will soon have to spend more.

An EU court deems ebooks “electronically supplied services” rather than products, preventing them from being taxed at the lower rates print books can.

The standard value-added tax (VAT) rates in EU member states varies, but in Luxembourg and France, it’s 17% and 20%, respectively, compared with the 3.3% and 5.5% rates those countries reserve for print.

Authorities say they’re open to amending tax rules to eliminate the distinction between print and digital, which some European governments and publishers are already pressing for.

EU tax law is still evolving for the digital market. VAT rates recently began being applied based on buyers’, rather than sellers’, locations, a change some worried would tamp down Europe’s nascent ebook markets.

More.


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