Happy New Year to all e-readers from the EU!

As some readers may not yet be aware, the ever-helpful European Union has changed the regulations regarding the VAT payable on e-books.  The change came into effect yesterday – a seriously unwelcome New Year gift to authors, readers, publishers and retailers through Europe.

Previously, VAT on e-books was charged at 3% in all European countries.  In future, it will be charged at the national rate of the purchaser’s home country.  This means, for example, that for readers in the UK, the tax has risen to 20%.

This change hasn’t exactly been widely publicised although there is a piece about it today’s Daily Telegraph.  Consequently, I thought readers would like to know why book prices will start to rise. My own view is that, although I’m prepared to take some of the hit myself, a part of it has to be passed on to the customer.  And while I apologise for this, I’m no happier about it than anyone else.