European Parliament Votes to Allow Reduced VAT Rates on E-Publications

By a vote of 590 to 8, with 10 abstentions, the European Parliament has formally agreed to allow Member States the option of applying reduced VAT rates on electronic books, newspapers and periodicals. This proposal, as put forth by the European Commission, is designed to bring the VAT treatment of e-publications in line with the VAT treatment of printed publications. Under the EU VAT Directive, Member States are currently allowed to apply reduced rates or even zero-rates to printed material, but must apply standard rates to all “electronically supplied services,” including e-publications.

The VAT rate on e-publications has long been a contentious issue in the European Union, and various Member States have lobbied for the ability to reduce-rate these items. The Commission’s proposal is scheduled to be heard by the European Council on June 16 for final approval.  

The post European Parliament Votes to Allow Reduced VAT Rates on E-Publications appeared first on Sovos.

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Author

Charles Riordan

Charles Riordan is a member of the Tax Research team at Sovos Compliance specializing in international taxation, with a focus on Value Added Tax systems in the European Union. Charles received his J.D. from Boston College Law School in 2013 and is an active member of the Massachusetts Bar.
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