Brussels, 22/07/2015 (Agence Europe) - Presenting a study carried out across 79 countries, the Federation of European Publishers (FEP) and the International Publishers Association (IPA) on Monday 20 July repeated their calls for a reduced rate of VAT on books, both printed and electronic (e-books).
The FEP and the IPA note that 31 of the countries surveyed applied a zero rate of VAT or no VAT on printed books and 31 others applied a reduced rate, whilst three countries apply a reduced rate on books with scientific or educational content. In the EU, only Denmark and Bulgaria apply a full rate of VAT on print books, whilst the United Kingdom and Ireland are the only ones to apply a zero rate. For e-books, 53 countries apply a standard rate, 18 a zero rate or no VAT and four countries a reduced rate. In the EU, only France and Italy apply a reduced rate on e-books.
The FEP notes that 26 states of the EU apply the reduced VAT rate on print books and that in 2009, the EU authorised the application of this reduced rate for books on all physical supports. 14 states have implemented this (most recently Germany and Malta). “The next logical step is to let member states apply the same fiscal regime to all types of books”, said the FEP. It also argues that the issue should be dealt with by the EU in the framework of a more general VAT revision in 2016 and calls for the process to begin, in order to put an end to what it describes as tax discrimination.
For its part, the IPA takes the view that a zero VAT rate would be the best way of supporting reading, education and a knowledge-based economy. It feels that the distinction between print books and e-books in terms of tax treatment hinders the development of the e-book market, particularly on the non-English-speaking markets. This difference in treatment also affect individuals who are unable to read print books and in many cases have no choice but to buy the electronic version of a book, which is more expensive due to the higher rate of VAT. (Elodie Lamer)