In March of 2015. EU Court of Justice ruled that the application of a reduced rate of VAT on electronic books and newspapers, which brought France and Luxembourg, is incompatible with the European Directive on VAT. According to the judges of e-books and newspapers are electronically delivered services and the Directive precludes the use of lower rates to such services.
After the verdict culture ministers of France, Polish, Germany and Italy have asked the European Commission to immediately adapt to EU regulations so that the reduced tax rate could also be used for e-books. MEPs also insist that the European Commission should make appropriate provisions on electronic books and newspapers.
A reduced rate of VAT on electronic books and newspapers spoke at the beginning of May, the European Commission chief Jean-Claude Juncker. “VAT should be technologically neutral” – he said.
This view is shared Andrus Ansip, commissioner. Digital single market. “Personally, I wspierałbym initiative reduced rates for e-books and digital newspapers” – said Ansip during the recent occurrence in the European Parliament.
The Commission will present proposals in 2016. This will effect a broad overview of the current VAT system in the EU. Every initiative in the field of taxation must be unanimously approved by the EU Member States.
The initiative supports selling Juncker, among others, E-book company Amazon. “As many of our customers, we are convinced that the books in any format, should be subject to the same reduced rate of VAT. The book is a book, and its cultural and educational importance stems from the content and work of the author, and not the format” – said in a statement the company.
In Poland, books, newspapers and magazines are subject to reduced VAT rate 8 per cent., but VAT on e-books and electronic newspapers is 23 percent. Polish Ministry of Finance supports harmonization of rates on e-books, but not for press-mail.
“Poland declared its support proposals for amendments seeking to harmonize VAT rates for similar goods and services, taking into account technological advances leading to a blurring of the differences between on-line environment and the physical world, ie. the differences in the level of taxation of books in both paper and digital “- wrote the press office of the Ministry of Finance in response to questions PAP. “It support is limited to the book market and does not include e-press. This is due to fundamental differences between traditional newspapers and e-newspapers” – added in response to the finance ministry.
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