Briefly Noted | Reduced VAT rate on Digital Books under Scrutiny by the Commission – Chartered Accountants Ireland

The European Commission has launched an infringement procedure against France and Luxembourg in respect of reduced VAT rates applied to digital books by these states.  EU legislation allows Member States to apply reduced VAT rates to a limited list of goods and services set out in Annex III to the VAT Directive. Downloading of digital books is regarded as a service supplied electronically, which is not included in this list and cannot therefore be taxed at the reduced rate according to the Commission.

via Reduced VAT rate on Digital Books under Scrutiny by the Commission – Chartered Accountants Ireland.