Reduced VAT rate for e-publications [EU Legislation in Progress]

Written by Cécile Remeur (1st edition),

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© Vincenzo De Bernardo/ Fotolia

The fact that print and digital publications are currently subject to separate value added tax (VAT) rates essentially means that products that are considered to be comparable and substitutable are being treated differently to one another. This situation results from rules which, on the one hand, allow Member States to apply reduced rates to printed publications, but on the other exclude this possibility for digital publications. In addition, the recent evolution in the VAT framework means that VAT on digital services should be levied in the Member State where the consumer is based (thus protecting the single market from application of different rates within a Member State because of the different location of providers).

The question of broadening the possibility to apply reduced rates to all publications, be they print or digital, is addressed in the proposal presented as part of the VAT digital single market package, and adopted by the European Commission on 1 December 2016.

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Stage: Draft Report

Source Article from https://epthinktank.eu/2017/05/02/reduced-vat-rate-for-e-publications-eu-legislation-in-progress/