On Monday 19 June, the European publishing sector expressed its regret at the Czech government's blocking of the legislative proposal aiming to allow member states to apply reduced rates of VAT to online publications (see EUROPE 11810).
Although the Czech delegation has expressed reservations on the substance of the text, the other member states meeting in Council felt that it was a veto on principle, as there was no agreement to allow the Czech Republic to carry out a pilot project for a reverse-charge VAT mechanism.
“We are extremely disappointed and frustrated that one member state was able to block progress on something so simple and straightforward that would benefit both publishers and their readers alike through lower VAT rates on sales. At a time when publishers are expanding press services online, via subscriptions, tablet and mobile apps, pricing will be crucial to the long-term viability of non-printed newspapers, magazines, books and journals”, said the executive director of the European Publishers' Council, Angela Mills Wade. She argued that this was not merely a taxation issue, but a societal and cultural matter. (Original version in French by Élodie Lamer)