VAT News

ECJ opinion on e-book reduced rating

Following previous decisions where both France and Luxembourg were told it was not lawful to apply reduced VAT rates to the supply of e-books, the ECJ has reaffirmed this position following a question from the Polish authorities.

The ECJ stated that "It would effectively compromise the overall coherence of the measure intended by the EU legislature, which consists in the exclusion of all electronic services from the possibility of a reduced rate of VAT being applied," effectively meaning that applying a reduced rate would directly contradict the existing legislation.

Despite this opinion, the ECJ has recently released a proposal with the aim of making e-books subject to the same rates as physical books.

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