The guideline debate on reduced rates of VAT revealed a highly-fragmented landscape between member states on how to move forward, at the Economy/Finance Council of Tuesday 21 march.
The question of bringing the VAT rate on electronic books (e-books, online press) into line with the reduced rates already applicable to physical publications was generally the subject of consensus. However, the European countries are still divided over the idea of zero or super-reduced rates, referred to in the latest compromise of the Presidency. As things stand, nine countries apply super-reduced (below 5%) (France, Italy, Spain and Luxembourg) or zero rates (Belgium, Denmark, Ireland, Sweden and the United Kingdom) to physical publications.
One group of countries, which includes Germany, Poland, Italy and the United Kingdom, is in favour of the option of allowing the member states to apply reduced or zero rates to online publications. Slovakia also said that it could accept the Presidency's compromise.
Slovenia expressed “strong reservations”. Hungary, Croatia, Portugal, Latvia and Bulgaria voiced fairly negative views. Sweden and Slovenia feel that the discussion should take place in the context of the VAT reform at the end of the year.
Lastly, Estonia, Lithuania and Bulgaria sought confirmation that they would not be obliged to apply reduced rates, but that it would remain an option.
The Maltese Presidency of the Council of the EU stressed that it hopes to reach agreement on this text before the end of its mandate, at the end of the first half of the year. (Original version in French by Élodie Lamer)