France pushes for VAT cut on digital and epublishing |
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6 October 2011 France has indicated that it is keen to push ahead with reclassification of ebooks and digital publishing from the current standard VAT rate, 19.6%, to the reduced rate, 5.5%. Click here to review all EU VAT rates At present, print materials, including newspapers and journals, are generally charged at the reduced VAT rates across Europe. However, digital media is charged at the higher, standard VAT rates. Click here to read about the varying rates for digitial publishing in Europe. This week, the ex-French cultural minister declared that France would look to unilaterally switch to the reduced VAT rate. This would give an indirect boost to the failing print industry - in particular the newspaper sector - through an effective VAT cut. However, this would almost certainly require approval by the European Commission, which oversees European VAT rules. |
