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General Chat > The Cost of eBooks to Dramatically Increase in 2015

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message 1: by David (new)

David Gooch | 3992 comments Mod
The cost of eBooks are poised to dramatically increase at the beginning of the new year, due to changes in VAT. Readers will end up having to pay anywhere from 17% to 25% more on each title, depending on the country they live in.
The European Commission recently unveiled a new ruling where member states will be taxed in the European member state in which the consumer is located, as opposed to the country from which the product is sold. Starting in January 2015 the new tax rates will be in effect for eBooks.
The new VAT laws will prevent Amazon, Nook and Kobo from getting away with charging a paltry 3% tax on eBooks, magazines, graphic novels and newspapers sold to European countries, because their headquarters are in Luxembourg. In a few months, UK customers will have to pay the 20% VAT on eBooks from Amazon, instead of the 3%. This will increase eBooks accross the board by 17%.
The Luxembourg government stands to lose around €800 million a year from the ruling, while the UK and Germany stand to gain around €350 million each by the higher VAT rates.

message 2: by Ruth (new)

Ruth Well that's absolutely typical! I finally decide to give eBooks a try and immediately the price goes up!

I suppose we should all try to stock up before it happens. Why are eBooks VATable when paper books are zero rated?

message 3: by David (new)

David Gooch | 3992 comments Mod
Sarah wrote: "Why are eBooks VATable when pape..."

The question of why e-books are not exempt but printed ones are is an interesting one, its basically because they aren’t exempt. To have something exempted you have to pass a law to make it exempt. No law passed, no exemption. Lobby your MP!

message 4: by Judith (new)

Judith | 560 comments I hadn't realised e.books were taxable, that ought to be addressed.

message 5: by David (new)

David Gooch | 3992 comments Mod
If you look at a book on Amazon Judith you will find it has next to the price "includes VAT* & free wireless delivery via Amazon Whispernet".

The star next to the VAT is shown down below as "* Unlike print books, digital books are subject to VAT."

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