The European Parliament committee on economic and monetary affairs has published its draft report supporting the Commission’s proposal to give all member states the option to apply similarly reduced, super-reduced, or zero rates to electronically-supplied publications, as are currently allowed for printed publications under the VAT directive. The requirement to always apply the standard rate to e-publications is seen as stifling the development of the e-book market.
The committee has made certain amendments to the Commission’s original text, including a proviso that this proposed flexibility in setting rates: ‘in no way prejudges the definitive VAT regime to be rolled out and in the context of which any increase in flexibility will have to be balanced against the impact on the functioning of the single market, the scope for VAT fraud, the rise in business costs and the risk of unfair competition’. See http://bit.ly/2nlb273.
The Commission consulted between July and September 2016 on the VAT treatment of e-publications, before presenting its proposal to Parliament in December.
The European Parliament committee on economic and monetary affairs has published its draft report supporting the Commission’s proposal to give all member states the option to apply similarly reduced, super-reduced, or zero rates to electronically-supplied publications, as are currently allowed for printed publications under the VAT directive. The requirement to always apply the standard rate to e-publications is seen as stifling the development of the e-book market.
The committee has made certain amendments to the Commission’s original text, including a proviso that this proposed flexibility in setting rates: ‘in no way prejudges the definitive VAT regime to be rolled out and in the context of which any increase in flexibility will have to be balanced against the impact on the functioning of the single market, the scope for VAT fraud, the rise in business costs and the risk of unfair competition’. See http://bit.ly/2nlb273.
The Commission consulted between July and September 2016 on the VAT treatment of e-publications, before presenting its proposal to Parliament in December.
