O% on e-books Update
A recent Notice from the EU confirms the proposal to allow Member States to apply the 0% rate on e-books has been adopted and will come into force from 4 December 2018. Point to note is that this is a temporary change which will run up to the introduction of the new “Definitive” VAT system planned to start in 2022. Where will VAT in the UK be at that point still seems an open question at time of writing. The Chancellor made no reference to applying this zero rate to e-books in the recent Budget but clearly the option to do so has now been formalised – will he act on it? – watch that space.