VAT increase on E Books

  iscanut 17:15 02 Jan 2015
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Answered

I see that wef today, the VAT rate on E Books increases from 3% to the full rate of 20% due to EU tax rule changes. Will be interesting to see if this has any effect on the downloads to E Readers ( Tablets, Kindles etc ).

  Forum Editor 17:45 02 Jan 2015

It's hardly like;y, given that E books are so much cheaper in the first place. I just bought a Kindle book for £4:31 that costs £8:91 in paperback form.

E-books are very much here to stay, and although VAT increases may result in a small sales blip it will be a passing thing. Amazon now sells more e-books than printed books, and that's not going to change.

  kad292 19:57 02 Jan 2015

Interesting that France and Luxembourg have ignored this rule,vat,while principled little UK do.

  spuds 09:14 03 Jan 2015

"Interesting that France and Luxembourg have ignored this rule"

Nothing new there then, we seem to be the only country who obeys the rules, yet get constantly abused, and being the underdog for doing so.

  sunnypete 10:57 03 Jan 2015

"They" will be VATing the air we breathe before long...

  Aitchbee 21:03 03 Jan 2015

This hyke in the cost of E Books [when 20% is added on] will have a detremental knock-on effect for the manufacturers of E Readers [Kindles etc] as there will be a corresponding dip [not just a blip] in future sales of their products, I reckon.

  wee eddie 21:32 03 Jan 2015

More than likely, the Sellers will absorb the VAT increase, in order to maintain the differential between e - material and printed matter.

After all, their production and distribution costs are minimal

  Quickbeam 23:48 03 Jan 2015

Why doesn't the reasoning for no VAT on paper words also hold true for e-words?

  wee eddie 00:06 04 Jan 2015

No idea

  morddwyd 10:29 04 Jan 2015

"Why doesn't the reasoning for no VAT on paper words also hold true for e-words?"

Vested interests, dear boy!

Check the directors' lists of the major publishing houses, who have tremendous influence (and who publish MPs' autobiographies!), both on the mainland and here, and compare them with e-publishers.

Also historical of course.

Printed matter was never subject to the old Purchase Tax, and there would have been uproar had VAT, which replaced it, been applied.

However, with e-publishing governments saw the chance of a new tax, and they are never slow at seizing such an opportunity!

As we speak the best brains in the Treasury are working on a way to tax the internet. After all, you have to have a licence for a television set, why not a modem?

  carver 10:42 04 Jan 2015

My wife has had a Kindle for a little over six months and was just getting into the habit of using that instead of buying books but after this increase she is back to the thing she likes best, a hard copy.

She can read it and keep it, she can read it and share it or she can read it then take it to the bookshop and get a £1 for it and while she is there buy more books for less than £3 each.

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