0% VAT on E-Books a page turn closer!
Whilst we remain in the European Single Market the UK is affected by decisions such as the one announced this week. It relates to the ability that Member States will have to mirror the same VAT treatment they apply to printed matter to digital publications. In the UK we apply a Zero Rate – ie no VAT to qualifying printed matter.
The European Economic and Financial Affairs Council (Ecofin) agreed a proposal that, whilst Members States would not be forced to, they could choose to give e-books and audio books the same VAT treatment – i.e. Zero, as is currently applied in the UK to books in a printed form.
Comment from the publishing sector is starting to call for this to be a change included by the Chancellor in his Autumn Budget – so that could make this year’s Budget papers a bit of a page turner! Question will be if it’s introduced is would e-book costs reduce by the VAT value or would the sector take a benefit on the VAT gain in their pricing?