Government To Review Zero Rate Of VAT On Books
The zero rate of VAT applied to books in Ireland is to be reviewed as part of the country’s recently announced four-year plan.
On page 97 of the plan In the VAT section, the text states:
The Government will also examine further rebalancing of the VAT system and zero rated VAT items within the context of wider and ongoing EU level consideration of the matter.
Jean Harrington of Maverick House and President of Publishing Ireland said that it would be, ‘insane to introduce VAT on books especially when we are trying to build a knowledge economy.’ Harrington also aid that VAT on books would \be detrimental for people’s access to books’ and would ‘reduce the numbers of books libraries could buy.’
The 150 page document features a number of other VAT measure including a phased increase to 23% by 2014 which will impact ebook and digital book editions which are already subject to VAT at 21%.
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A refreshing breath of common sense in the rarified atmosphere of governmental grabbing at straws.
Ian,
I think among the struggling publishers and booksellers on the island you’ll not be the most popular person with opinions like that.
I think if it is going to happen some kind of phase in would be preferable rather than a blow out 0-21% move.
Eoin
Publishing of ‘fine’ literature genre is subsidised by the governments north and south i.e.the tax-payer. To put tax on already struggling survivors of a falling market implies making the buyer pay twice for the same product.
‘Slow moving’ genre are already vanishng from general bookshops and control of the market is mainly in the hands of a few buyers and distributors for a few companies.
At least one distributor has packed in its presence in the Irish market and publishers have reduced their commitments and a few ceased operations.
A tax on books would probably lead to the English experience of over 800 books shops closing last year and libraries under serious threat.
Tax is a cultural change which will further diminish commercial publishing and inevitably further reduce Irish culture to crass profit and loss accountancy. But what shall it profit a man….
Dennis Greig