Brussels, 09/12/2014 (Agence Europe) - Ahead of the Finance Council on Tuesday 9 December, EDiMa, the European trade association representing online platforms, has argued that VAT on electronic books (e-Books) should be aligned with the rate on printed books. It says that applying higher prices for electronic books, a rapidly expanding sector of the digital economy, is a threat to reading and to the preservation of culture in general. “Digital reading inexplicably incurs higher rates of VAT. We should encourage reading in all formats equally. A book is a book, irrespective of how it is enjoyed. To choose not to align VAT would abandon a historic commitment to reading and culture”, said EDiMA President Stephen Collins.
Currently, eBooks are subject to standard VAT rates in 26 out of 28 member states, while most equivalent printed books benefit from a reduced VAT rate. France and Luxembourg, which have decided to apply a reduced VAT rate on electronic books, have had an infringement procedure against them opened by the European Commission. Discrimination such as this is a barrier to growth and cross-border trade, and inconsistent with efforts to promote the benefits of the digital economy to citizens, says EDiMA. (IL)